July 31, 2025
5 min read
Nate Kostar
Kraken reports 12M Q2 revenue with 57% EBITDA drop, driven by growth in tokenized stocks and expanding beyond crypto trading.
Kraken's Q2 Earnings Dip Amid Expansion Beyond Crypto into Tokenized Equities
Kraken reported $411.6 million in revenue for the second quarter of 2025, marking an 18% increase compared to the same period last year. Despite this revenue growth, the exchange’s adjusted earnings declined 7% year-over-year to $79.7 million, down from $85.5 million in Q2 2024. Trading volume on Kraken’s crypto exchange jumped 19% over the past year, reaching $186.8 billion during Q2 2025. Other key metrics showed positive momentum as well, with assets under custody rising 47% to $43.2 billion and funded accounts increasing 37% to 4.4 million. Additionally, Kraken’s stablecoin-to-fiat market share grew significantly, from 43% to 68%. This earnings report arrives as Kraken pursues a $500 million capital raise at a $15 billion valuation while preparing for a potential initial public offering (IPO) in 2026.Kraken is in "Build Mode"
Kraken attributed some of the decline in adjusted earnings to broader macroeconomic uncertainties, including U.S. tariffs. The company emphasizes it is currently in "Build mode," prioritizing expansion beyond crypto trading over immediate profitability. Supporting this strategic shift, Kraken launched several new products in Q2 2025:- U.S. equities trading: Available on Kraken’s app for users in most U.S. states, enabling management of stocks and crypto in one platform.
- 24/7 FX perpetual futures: Introduced in mid-April, expanding Kraken’s derivatives offerings.
- xStocks: Debuted in June, a suite of tokenized blue-chip equities and ETFs allowing users to trade tokenized versions of traditional financial assets.
- Bybit announced partnerships to offer tokenized equities.
- Coinbase is seeking U.S. Securities and Exchange Commission (SEC) approval to list tokenized stocks, with its chief legal officer calling it a "huge priority."
- Robinhood launched over 200 tokenized U.S. stocks and ETFs on the Arbitrum network for European users.
- eToro plans to tokenize the 100 most popular U.S. stocks and ETFs as ERC-20 tokens on Ethereum. This growing ecosystem signals increasing institutional and retail interest in bridging traditional financial assets with blockchain technology.
- Kraken Exec Discusses Tokenized Equities Beyond Wall Street and Blockchain
- eToro Launches Tokenized US Equities and ETFs
- The Rise of Tokenized Assets: Bridging TradFi and Crypto
TradFi and Crypto Converge in Tokenized Equities
Kraken’s push into tokenized equities reflects a broader trend of convergence between traditional finance (TradFi) and cryptocurrency markets. Other major players are also advancing in this space:Frequently Asked Questions (FAQ)
Q: What was Kraken's revenue in Q2 2025? A: Kraken reported $411.6 million in revenue for the second quarter of 2025. Q: How did Kraken's adjusted earnings change year-over-year in Q2 2025? A: Kraken's adjusted earnings declined by 7% year-over-year, from $85.5 million in Q2 2024 to $79.7 million in Q2 2025. Q: What new products did Kraken launch in Q2 2025? A: Kraken launched U.S. equities trading, 24/7 FX perpetual futures, and xStocks (tokenized equities and ETFs). Q: Why is Kraken expanding into tokenized equities and traditional finance? A: Kraken is strategically expanding beyond crypto trading to capture broader market trends and offer integrated financial management solutions for its users. Q: What is the current trend regarding tokenized equities in the crypto market? A: There is a growing trend of convergence between traditional finance and cryptocurrency markets, with several major players like Bybit, Coinbase, Robinhood, and eToro actively participating in the tokenized equities space.Crypto Market AI's Take
Kraken's strategic move into tokenized equities and traditional finance instruments like FX perpetual futures highlights a significant trend in the digital asset space. As more platforms seek to offer a consolidated financial experience, the lines between traditional finance (TradFi) and decentralized finance (DeFi) continue to blur. This expansion not only diversizes Kraken's offerings but also aligns with the broader industry's exploration of bridging real-world assets with blockchain technology. Our platform, AI Crypto Market, is designed to help users navigate these evolving markets by providing advanced AI-powered trading bots and comprehensive market intelligence.More to Read:
Source: Kraken's Q2 earnings dip as exchange expands beyond crypto on July 30, 2025.