"One of the world's largest crypto exchanges has raised a huge stash of capital from a blue chip financial titan. The Wyoming-based Kraken secured $200 million in a strategic investment from Citadel Securities, the nearly 25-year-old market maker, a Kraken spokesperson confirmed to Fortune. The investment valued the crypto exchange at $20 billion. The round comes shortly after Kraken closed an earlier round of financing in September in which it raised $600 million at a $15 billion valuation"
""We're excited to support Kraken's continued growth as it helps shape the next chapter of digital innovation in markets," Jim Esposito, president of Citadel Securities, said in a statement in a press release shared with Fortune. The market maker will work with Kraken on risk management and market structure analysis, among other efforts, according to the release. Citadel Securities, led by CEO Ken Griffin, has historically avoided market-making on crypto exchanges or investing in digital assets, amid regulatory uncertainty in the U.S."
Kraken secured a $200 million strategic investment from Citadel Securities, valuing the exchange at $20 billion. The deal followed a September financing that raised $600 million at a $15 billion valuation from investors including Jane Street, DRW, HSG, Oppenheimer, Tribe Capital, and a family office tied to co-CEO Arjun Sethi. Citadel Securities said it will support Kraken on risk management and market structure analysis. Citadel historically avoided crypto market-making amid U.S. regulatory uncertainty but has recently moved toward transacting on major exchanges. The investment signals growing engagement of large market makers with digital asset markets.
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