In a strategic move to solidify its infrastructure ahead of a planned public offering, leading cryptocurrency exchange Kraken has acquired token management specialist Magna. The deal, reported by industry outlet Solid Intel, is a key part of Kraken's preparations for its highly anticipated Initial Public Offering (IPO), targeted for the first half of 2025.
The acquisition is designed to internalize and enhance Kraken's capabilities in managing the entire lifecycle of digital assets, including issuance, distribution, staking, governance, and compliance. By bringing Magna's technology in-house, Kraken aims to gain direct control over this complex and compliance-sensitive layer of its business, streamlining operations and reducing reliance on third-party vendors. This move is seen as critical for demonstrating operational maturity and a commitment to regulatory compliance to potential public market investors, particularly as scrutiny from bodies like the U.S. Securities and Exchange Commission (SEC) intensifies.
Magna, founded in 2021 and a graduate of Y Combinator's 2022 winter cohort, provides software to manage token vesting schedules, airdrops, and asset allocations across multiple blockchains. The platform reportedly reached a peak total value locked of $60 billion in 2025, indicating significant usage among token projects. Kraken stated that Magna will function as an operational layer within its broader product vision, covering vesting, white-label token claims, custody, escrow, and staking workflows.
This transaction is Kraken's sixth acquisition in the past 12 months, following its $1.5 billion purchase of U.S. futures platform NinjaTrader. Terms of the Magna deal were not disclosed, though PitchBook data shows the startup was last valued at $70 million. The acquisition spree aligns with Kraken's push to diversify revenue streams beyond trading fees as it approaches the public markets. Kraken parent company Payward reported $2.2 billion in adjusted revenue for 2025, up 33% year over year.
"If we do not build reliable lifecycle infrastructure, markets consolidate around whoever controls distribution and access," said Kraken Co-CEO Arjun Sethi. "With Magna, we are investing in open, chain aware infrastructure that engages builders earlier and connects fundraising, distribution, and liquidity into a single operating layer."
The move reflects a broader industry trend where major exchanges like Coinbase and Binance vertically integrate critical services. Competitors have made similar acquisitions, with Coinbase buying Liquifi and Anchorage Digital acquiring Hedgey, highlighting a race to capture value earlier in a project's lifecycle and build more durable revenue sources.
