Kraken (legally known as Payward, Inc.) is a U.S.-based cryptocurrency exchange founded in 2011. As one of the first Bitcoin exchanges listed on the Bloomberg Terminal, Kraken reached a valuation of $10.8 billion by mid-2022. Since 2018, the company has faced multiple regulatory investigations, resulting in cumulative fines exceeding $30 million.
Headquarters: San Francisco, California, USA
CEO: Dave Ripley
History and Milestones
Founded by Jesse Powell, Thanh Luu, and Michael Gronager in 2011, Kraken emerged as a secure alternative following the Mt. Gox collapse. Powell, an advisor to Mt. Gox, leveraged his expertise to build Kraken's robust infrastructure.
- 2013: Launched with Bitcoin, Litecoin, and Euro trading pairs.
- 2014: Secured $5M in Series A funding and debuted on Bloomberg Terminal. Assisted in the Mt. Gox investigation due to its impeccable security record.
- 2016: Acquired Coinsetter and Cavirtex, expanded services with CleverCoin and Glidera.
- 2017: Purchased Cryptowatch, boasting 50,000 daily registrations by year-end.
- 2020: Became the first U.S. crypto exchange to obtain an SPDI license in Wyoming.
- 2022: Launched an NFT marketplace beta and transitioned leadership to Dave Ripley.
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Regulatory Challenges
Kraken has navigated significant scrutiny:
- 2022: U.S. Treasury investigated allegations of serving sanctioned jurisdictions.
- 2023: Exited Japan and the UAE amid regulatory pressures.
Leadership Transition
In September 2023, Jesse Powell stepped down as CEO, succeeded by Dave Ripley. Powell remains Chairman, while Kraken ventures into traditional equities and ETFs.
FAQs
Q: Is Kraken available worldwide?
A: While operational in many regions, Kraken has exited certain markets (e.g., Japan, UAE) due to regulatory constraints.
Q: What makes Kraken unique?
A: Its early adoption of institutional-grade security and SPDI licensing set industry benchmarks.
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Q: Can I trade stocks on Kraken?
A: Yes! Kraken plans to offer U.S.-listed stocks and ETFs, expanding beyond crypto.