By Arasu Kannagi Basil and Pritam Biswas

Nov 19 (Reuters) - Kraken, one of the world's largest

cryptocurrency exchanges, said on Wednesday it has

confidentially filed for an initial public offering in the U.S.,

as digital asset companies look to tap the new listings market

before the 2026 midterm elections.

Companies such as stablecoin issuer Circle and

crypto exchanges Gemini and Bullish have made

strong debuts in the U.S. this year.

Kraken's potential listing will fuel competition in a

sector where sentiment has turned more upbeat amid support from

the Trump administration.

President Donald Trump, who has pledged to make America the

"crypto capital of the world", signed the Genius Act into law

earlier this year, boosting confidence in the digital asset

sector.

"Kraken's confidential IPO signals one thing, crypto is here

to stay and crypto exchanges are not a winner takes all market.

The pathway for crypto exchanges in the US is to innovate and

expand with more tradable assets and penetrating payments," said

Third Bridge analyst Jacob Zuller.

Kraken's announcement comes a day after the company said it

was valued at $20 billion in its latest capital raise, a 33%

increase in under two months. The funding involved participation

from Wall Street heavyweights Jane Street and Citadel

Securities.

The crypto exchange plans to go public in the first quarter

of 2026, Reuters had reported last month.

The recent fundraise and IPO could allow Kraken to invest in

the growth of its products and overseas expansion, Zuller said.

With midterm elections less than a year away, analysts

expect some urgency from crypto companies in pursuing IPOs to

get ahead of any uncertainty. The presidential party tends to

lose ground in midterm elections, which could reshape the

landscape for the digital asset industry.

Crypto-focused asset manager Grayscale and custody startup

BitGo are among the companies currently in the IPO pipeline.

Kraken, founded in 2011, said the number of shares to be

offered and the price range have not yet been determined.

Initially focused on crypto, the company has expanded across

asset classes in recent months, including equities with the

rollout of commission-free trading.

Kraken has also been expanding aggressively through

acquisitions, buying retail futures trading platform NinjaTrader

for $1.5 billion in May and futures exchange Small Exchange from

IG Group for $100 million last month.