According to media reports, the major cryptocurrency exchange Kraken is considering entering the stock market in 2022 through a direct listing on one of the US exchanges.
As reported by Fox Business reporter Charles Gasparino, the Kraken cryptocurrency exchange may enter the stock market next year with the help of a specialized company for targeted mergers and acquisitions (SPAC) or through an initial public offering (IPO).
A spokesperson for Kraken confirmed that the exchange may consider a public offering next year. However, any such offer would be implemented through a direct listing, rather than through SPAC, as the company is “too big” for that.
It should be noted that the multi-profile cryptocurrency firm Kraken has a banking license from the Wyoming state regulator and is one of the largest companies in the industry.
So far, no major cryptocurrency exchanges have entered the US stock market, but that should change soon. In January, Coinbase confirmed plans to enter the stock market through a direct listing. Due to the lack of bitcoin ETFs in the US market and the boom in cryptocurrency companies, Wall Street investors may be interested in investing in stock market-traded exchanges.
Kraken CEO Jesse Powell has previously hinted at his interest in entering the stock market in 2022, but only at a reasonable price. He said that $10 billion is too little. Coinbase, a direct competitor to Kraken, has an expected valuation of $100 billion.