Kraken's second-quarter earnings for 2025 reveal a mixed financial landscape as the cryptocurrency exchange strategically broadens its services beyond its core crypto offerings. While the company experienced an overall revenue increase, certain factors indicate a dip in specific areas, reflecting the costs associated with expansion and broader market influences.
Kraken reported Q2 2025 revenue of $412 million, marking an 18% increase compared to the same period last year. Total exchange volume also saw a 19% year-over-year increase, reaching $186.8 billion. Additionally, the number of funded accounts grew by 37% to 4.4 million, and assets on the platform increased by 47% to $43.2 billion. Despite these positive indicators, the company's adjusted pre-tax profit experienced a 7% decrease, settling at $79.7 million. This decline is attributed to Kraken's ongoing investments in new product development and its expansion into new geographical markets.
A significant aspect of Kraken's strategy is its move to become a multi-asset platform, offering services beyond cryptocurrency trading. In April 2025, Kraken announced the introduction of commission-free trading for over 11,000 U.S.-listed stocks and ETFs. This initiative allows users in select U.S. states to trade stocks and ETFs directly within their Kraken accounts, marking a key step in merging traditional and digital asset classes. The company intends to expand this service to additional U.S. states and international markets, including the UK, Europe, and Australia.
Kraken's expansion includes several new products and services. These include tokenized assets, a global money app called Krak, and a premium membership program called Kraken+. For institutional clients, Kraken launched a full-service prime brokerage called Kraken Prime, enhanced its custody solutions, and introduced Kraken Embed, a white-label crypto-as-a-service solution. These developments aim to cater to a wider range of clients and solidify Kraken's position as a comprehensive financial services provider.
Several factors contributed to Kraken's Q2 performance. The company saw increased market share in spot volume, driven by investments in product experience and a strong position in stablecoins. Stable-fiat spot volumes grew from 43% to 68%. However, broader macro uncertainties and market turbulence related to U.S. tariffs impacted trading volumes, leading to a quarter-over-quarter deceleration.
Looking ahead, Kraken has several key initiatives planned for the second half of 2025. These include extending commission-free stock and ETF trading to major markets beyond the U.S., introducing tokenized equities to more jurisdictions, and launching physical and virtual debit cards for seamless spending of fiat and crypto. The company is also focused on securing new licenses and adding local funding rails to expand its global footprint.
Kraken is also seeking to raise $500 million in a new funding round, targeting a $15 billion valuation. This move reflects renewed investor confidence in crypto infrastructure providers and follows a U.S. court dismissing a Securities and Exchange Commission (SEC) lawsuit against Kraken. Recent regulatory developments, such as the GENIUS Act and the CLARITY Act, have also contributed to a more favorable environment for crypto businesses in the U.S.
