Kraken Earnings Slip Despite Revenue Growth and Push Into Tokenized Stock Trading

Kraken posted $411.6 million in revenue for the second quarter of 2025, representing an 18% jump from the same period last year, the exchange announced in its earnings release. Despite this revenue growth, the company’s adjusted earnings fell 7% year-over-year to $79.7 million, compared to $85.5 million in Q2 2024.

Trading volume on the platform surged 19% over the past twelve months, reaching $186.8 billion during the second quarter. The exchange saw significant growth in other key metrics, with assets under custody climbing 47% to $43.2 billion and funded accounts expanding 37% to 4.4 million. Kraken’s market share in stablecoin-to-fiat trading also strengthened considerably, rising from 43% to 68%.

These results come as Kraken pursues a $500 million fundraising round at a $15 billion valuation while laying groundwork for a potential public offering in 2026.

Kraken Q2 Financial Highlights

– Gross Revenue: $411.6M (+18% YoY, -13% QoQ)
– Trading Volume: $186.8B (+19% YoY, -11% QoQ)
– Funded Accounts: 4.4M (+38% YoY, +13% QoQ)
– Adjusted EBITDA: $79.7M (-7% YoY, -57% QoQ)
– Assets on Platform: $43.2B (+46% YoY, +24% QoQ) pic.twitter.com/Vm4th3ZD7f

— Dillon Newman (@Dilnewm) July 30, 2025

Strategic Expansion Beyond Crypto Trading

The exchange pointed to broader macroeconomic uncertainties tied to US tariffs as one factor behind the decline in adjusted earnings. Company executives described Kraken as operating in “Build mode,” prioritizing business expansion beyond traditional crypto trading over short-term profitability.

This strategic shift materialized through several major product rollouts during the quarter. The platform launched US equities trading functionality on its mobile app, enabling users across most US states to manage both stocks and cryptocurrencies from a single interface. Additionally, Kraken introduced 24/7 foreign exchange perpetual futures in mid-April and unveiled xStocks in June, offering tokenized versions of blue-chip stocks and exchange-traded funds.

Industry-Wide Push Toward Tokenized Assets

Kraken’s expansion into tokenized equities reflects a broader trend of convergence between traditional finance and cryptocurrency markets. Competing exchange Bybit has similarly announced partnerships focused on tokenized equity products, while Coinbase actively seeks Securities and Exchange Commission approval for listing tokenized stocks. Paul S. Grewal, Coinbase’s chief legal officer, recently told Reuters that tokenized assets represent a “huge priority” for the company.

Traditional brokerage firms are also making significant moves in this space. Robinhood rolled out over 200 tokenized US stocks and ETFs on the Arbitrum network for European customers in June. This week, regulated trading platform eToro revealed plans to tokenize the 100 most popular US stocks and ETFs as ERC-20 tokens on the Ethereum blockchain.

Potential Market Implications

The mixed earnings results amid aggressive expansion efforts may raise questions about Kraken’s near-term profitability trajectory as it prepares for public markets. The declining adjusted earnings could signal potential headwinds for crypto exchanges balancing growth investments with investor expectations.