The long-silent cryptocurrency exchange Kraken has recently been quite active, not only launching stock tokenization and a Layer 2 network but also preparing for an IPO with a valuation of $15 billion, transforming from a traditional exchange into a crypto unicorn. (Background: Kraken integrates with Backed on the BNB Chain to expand the influence of tokenized stocks xStocks) (Additional context: Kraken launched cross-border payment 'Krak': instant transfers in 110 countries, supporting cryptocurrencies & fiat currencies, savings rewards, aiming to completely replace traditional banks) In July 2025, the crypto market ignited the flames of a bull market once again. Unlike previous bull markets, cryptocurrencies like Bitcoin began to deeply integrate with U.S. stocks during this cycle. Just as everyone was turning their attention to Robinhood's stock tokenization, a long-silent old exchange was quietly opening the doors to the capital markets. This exchange is called Kraken. It was once referred to as the 'big brother of the crypto world', safe and stable, yet long hidden in the shadows of giants Coinbase and Binance. In the Chinese community, it has long been labeled as a 'safe withdrawal channel', having previously been low-key to the point of almost being forgotten. Now, the situation has changed. In the second quarter of 2025, Kraken scored 89 points in the Kaiko Global Spot Exchange Composite Score, ranking second only to Coinbase; quarterly revenue increased by 18%, and trading volume reached $186.8 billion; it launched the Layer 2 network Ink, the stock tokenization platform xStocks, and acquired NinjaTrader... The long-sleeping sea monster suddenly turned over, causing a stir on Wall Street. At the end of July, Kraken prepared for the final round of financing with a $15 billion valuation, gearing up for its 2026 IPO. From 'the honest person in the geek circle' to 'the next crypto unicorn', there is a long-lasting internal struggle in between; Kraken's story is a 14-year transformation saga. From card trader to exchange founder, in the 1990s, Jesse Powell was just a teenager obsessed with Magic: The Gathering. Unlike other battle-hungry players, he was better at finding arbitrage opportunities in the card market, which was when he first realized: 'Anything of value can be priced and traded.' After the millennium, Powell worked in technical support at an internet service provider. Online games (Endless Quest) became popular in the office. This was the first large-scale online game with real currency trading elements, where a virtual castle could sell for thousands of dollars. Exchanging virtual items for real money allowed Powell to see the prototype of 'digitalization of real assets'. Soon after, he became fascinated with (Diablo II). Initially, he just killed monsters and sold equipment; an average player earning $25 an hour was already considered good. But Powell quickly discovered a more efficient arbitrage method: exchanging $5 in game gold for rare items and then selling them on eBay for $30, achieving a 6-fold return on each transaction. This side business later expanded to over 20 games, evolving into a small virtual currency trading empire. Powell later described this experience as 'the prelude to cryptocurrency'. In 2010, Bitcoin entered his view. Powell initially thought it was just another type of 'WoW gold'. But he soon realized that Bitcoin solved core problems in virtual currency trading—refund disputes, delivery difficulties, high cross-border payment costs... The decentralization and low-cost trading of Bitcoin made Powell realize: 'This can not only change the virtual game economy but even reshape the financial system in reality.' In just a year, he transformed from a virtual game currency trader to a Bitcoin enthusiast. In 2011, a friend he met while playing (Magic: The Gathering) invited him to visit the then-largest Bitcoin exchange Mt. Gox's office. Rather than a visit, it was more of a special trip to solve problems. During that visit, the infamous 880,000 coins hacking incident broke out. Powell spent about a week and a half helping Mt. Gox resume operations and intuitively saw the enormous risks in the crypto world: 'If cryptocurrency wants to enter the mainstream, it needs a more serious player, an exchange that is safe, compliant, and can win regulatory and user trust.' That same year, Jesse Powell and his technical partner Thanh Luu officially founded Kraken in San Francisco. Unlike other entrepreneurs pursuing speed, Powell spent an entire year building a security team, passing third-party audits, and pioneering two-factor authentication (2FA), becoming one of the first crypto exchanges to publicly prove its security capabilities. In the following decade, Kraken followed a path of slow-paced expansion. In 2013, it became one of the first overseas exchanges to receive permission from Japan's Financial Services Agency; in 2014, it assisted in the asset liquidation of Mt. Gox's collapse, further establishing its reputation for compliance and security; by 2020, it had operated in over 200 countries and regions, obtaining licenses from multiple countries including the U.S., Canada, the UK, Japan, and Australia, becoming one of the most comprehensive compliant exchanges globally. The groundwork for steady expansion was laid, and Kraken was just one opportunity away from a turnaround. Transformation of the old exchange. For a long time, Kraken has been labeled as 'old, safe, and low-key', yet behind this label lies 'stuffy and outdated'. In the Chinese crypto circle, it has been long labeled as a 'safe U withdrawal channel' for its ability to quickly trade stablecoin USDT for fiat currencies like USD and EUR, appearing to the public like an old-fashioned bank: stable and reliable, but lacking brand prominence and has never led the narrative. In contrast, Coinbase in the U.S. is like the 'Apple' of the crypto world: shiny, user-friendly, and everywhere. It excels at marketing, from Coinbase Learn educational content to the Super Bowl ads in 2022, NBA partnerships, esports team sponsorships, and celebrity endorsements, gradually becoming synonymous with crypto assets in the minds of Americans. In comparison, Kraken's first thirteen years were more like a tech geek's self-cultivation, akin to 'Linux', powerful and professional but long lived in the geek circle. Social media data might better illustrate the issue: while Coinbase's X fans have reached 6.5 million, Kraken is still hovering around 1.6 million. However, all of this was completely overturned in 2025. Kraken frequently made headlines, its honest, invisible image no longer existed, replaced by a vibrant and active crypto giant: Stock Tokenization (xStocks): Through cooperation with Backed Finance, launching tokenized stock and ETF trading on the blockchain, covering over 60 U.S. stock assets including Apple, Tesla, and Nvidia. Traditional Finance M&A: Acquiring retail futures platform NinjaTrader for $1.5 billion, expanding derivatives and futures trading. Stablecoin Ecosystem: Strategic investment in stablecoin issuer StablR, promoting the global application of EURR and USDR. Layer 2 Ecosystem In...

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