Kraken Targets $20B Valuation Ahead of IPO

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Good Morning,

Kraken is pushing to enter public markets from a position of strength. Reports say it’s seeking a strategic investor that could lift its valuation to $20B ahead of a 2026 IPO.

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In Today's Email:

• What Matters: Kraken Targets $20B Valuation Ahead of IPO 👀 

• Product of the Week: Swift Tests Onchain Messaging with Linea 💳️ 

• Charts: ETH ETFs Record $796M Outflows, Hypurr $69K Floor Price 📊 

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TOGETHER WITH

0G Launches Aristotle Mainnet to Power the DeAI Era

Aristotle is live, 0G’s mainnet launch turns the vision of decentralized AI into reality. With more than 100 partners across cloud, custody, wallets, DeFi, and infrastructure, the 0G ecosystem is positioned from the start to expand AI without limits.

The network is built for scale, supporting 11K TPS with major backing from QuickNode, ThirdWeb, and Ankr. This is not just another chain launch but the foundation for AI as a public good, open and unstoppable.

TradFi is yesterday. DeAI is today. The real question is, are you ready to build?

WHAT MATTERS

Kraken Targets $20B Valuation Ahead of IPO

State of play: Kraken is in talks with a potential strategic investor to raise $200–300M, a deal that could lift its valuation to $20B, according to Bloomberg.

• The move follows a reported $500M raise at a $15B valuation.

• Kraken, one of the largest in the US, is preparing for an IPO in early 2026 with Morgan Stanley and Goldman Sachs as advisors.

• Kraken has recently expanded into derivatives with a $1.5B NinjaTrader acquisition plan, posted $1.5B in 2024 revenue, and brought in $472B in Q1’25.

Why it matters: A $20B valuation would put it in the same league as Circle and Coinbase.

Our take: The timing is key. With Trump’s pro-crypto stance and IPO windows reopening, Kraken wants to lock in a premium before competition intensifies.

For builders and investors: Expect a ripple effect. If Kraken lists strong, other exchanges and infrastructure firms may accelerate IPO plans.

PRODUCT OF THE WEEK

Swift Tests Onchain Messaging with Linea

Swift is testing an onchain version of its global payments messaging system using Ethereum Layer 2 Linea.

• The pilot involves more than a dozen banks, including BNP Paribas and BNY, and is seen as a step toward modernizing international interbank payments.

• Swift chose Linea for its zkEVM architecture, which uses ZK-rollups and advanced cryptographic proofs to ensure privacy and compliance.

• Linea has been live since July 2023 and recently launched its native token, LINEA.

Other cool products:

• T3rn, a universal execution protocol.

• Velo, a blockchain-powered PayFi network.

• Obsidian Finance, a multi-chain DeFi platform.

• Yei Finance, a non-custodial money market protocol on the Sei network.

• CiaoTool, an automation tools for crypto creators, traders, and project teams.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

CHARTS OF THE WEEK

Spot ETH ETFs Face Record $796M Outflows

State of play: US spot Ethereum ETFs saw their worst week since launch, recording $795.6M in outflows as ETH briefly fell below $4,000 before rebounding.

• BlackRock’s ETHA fund lost over $200M, while Fidelity’s FETH shed $362M.

• Spot Bitcoin ETFs also bled heavily, with $902.5M in outflows.

• Analysts cite technical breakdowns, macro jitters, and liquidations as triggers for the selloff.

Our take: The record outflows from spot Ethereum ETFs show how fragile sentiment remains, even with ETH holding near $4,000. Investors are quick to pull capital when technical or macro risks flare up.

Hyperliquid’s Hypurr NFTs Debut with $69K Floor

State of play: Hyperliquid launched its 4,600 Hypurr NFTs on the HyperEVM mainnet, distributing most to early supporters of its HYPE token genesis event.

• The collection quickly hit a floor price near $69,000, with over $45M in trading volume.

• One NFT sold for nearly $470,000.

• While generating major buzz, the Hyper Foundation noted no guaranteed utility, sparking debate over NFTs’ role as the market revisits digital collectibles.

Our take: Hypurr’s explosive debut shows that NFTs tied to strong ecosystems can still command serious demand, even in a market that has cooled since 2021.

QUICK BITES

• Tether could draw SoftBank, Ark as backers.

• Hypurr NFTs floor price surges past $60,000.

• Bitcoin, Ethereum treasuries are buying less crypto.

• Citi raises stablecoin market cap forecast to $4T by 2030.

• Singapore, UAE are the ‘most crypto-obsessed’ countries.

• Aster climbs to first spot for daily fees among perpetual DEXs.

• Spot Ethereum ETFs see largest outflow week since inception.

• TeraWulf seeks $3B in debt to finance new data center capacity.

• New Solana proposal aims to boost throughput by adjusting block size.

• Kraken mulls potential investor at $20B valuation ahead of planned IPO.

NOTEWORTHY READS & MEME

• Delphi Digital’s read on Plasma Foundation

• Ignas’s read on The Changing Crypto Order

• Kairos Research’s read on Jito: Capturing the Economics of Solana at Scale

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.