Nov 18 (Reuters) - Crypto exchange Kraken said on

Tuesday it was valued at $20 billion in its latest fundraise, a

33% increase in under two months, as digital market firms

continue to attract investor interest.

The $800 million dual-tranche funding round follows a

crypto-friendly regulatory tone under U.S. President Trump,

encouraging digital asset firms to expand in the U.S. with

promises of clearer rules.

Peers such as Gemini and Coinbase, as well

as crypto firm Ripple, have benefited from eased oversight under

Trump, who, along with family, has been an active player in the

still nascent slice of finance.

Kraken's primary tranche of the funding round was led by

institutional investors such as Jane Street, HSG, Oppenheimer

Alternative Investment Management and Tribe Capital, co-founded

by Kraken's co-CEO Arjun Sethi.

Citadel Securities contributed $200 million in a strategic

investment as the second tranche.

The financing values Kraken well above recently listed

public peers Bullish and Gemini, both of which have

faltered since their stellar day-one showings on U.S. bourses,

reflecting persistent challenges faced by crypto firms under

public market scrutiny as the sector seeks mainstream

acceptance.

The announcement also coincides with a wobble in crypto

prices after a long rally, led by bitcoin, amid doubts about

future U.S. interest rate cuts and a risk-averse market mood.

Kraken has been actively investing capital to expand into

various asset classes and grow its user base. Last month, it

said it had bought futures exchange Small Exchange from IG Group

for $100 million, paving the way to launch a fully U.S.-based

derivatives suite.

The funding round follows a September fundraise at a $15

billion valuation.