Kraken: The Complete Guide

What is Kraken?

Kraken is a centralized cryptocurrency exchange (CEX) that has been operating since 2011, making it one of the oldest crypto businesses still standing. It was co-founded in July 2011 by Jesse Powell, Thanh Luu, and Michael Gronager, and is run by parent company Payward, Inc. It launched public trading in September 2013 with Bitcoin, Litecoin, and euro pairs, and grew into a full-service platform offering spot trading, margin, futures, staking, and, more recently, tokenized stocks.

Unlike a decentralized exchange, Kraken is a company that holds your assets in custody, matches your orders on its own order book, and acts as the on-ramp between traditional money (fiat) and crypto. You trust Kraken to secure funds, process withdrawals, and stay solvent. In exchange, you get a familiar account-based experience, deep liquidity, customer support, and fiat rails.

The Kraken short answer

Kraken is a veteran, security-focused US exchange. It pioneered proof of reserves, has survived roughly 15 years without an exchange-scale hack, and offers a cheap pro trading interface. In 2026 it is notable for four things beyond plain trading: the Ink Layer 2 blockchain it incubated, xStocks tokenized equities, its resumed US staking product after a 2023 SEC settlement, and a confidentially filed IPO. It is a solid mainstream choice, but it is still custodial, and you should self-custody long-term holdings.

How it works: products and mechanics

Kraken is really several products stacked on one account.

The basic app vs. Kraken Pro

The consumer-facing Kraken app is built for simplicity: an Instant Buy button, a price chart, and a portfolio view. It is easy but expensive, because Instant Buy bakes a flat fee plus spread into every order.

Kraken Pro is the serious trading interface. It exposes the full central limit order book, advanced order types (limit, stop-loss, take-profit, trailing stops), margin trading with up to 5x leverage on spot pairs, and the maker-taker fee schedule that rewards you for adding liquidity. If you care about cost, Kraken Pro placing limit orders is where you want to be. The two share one balance, so you can move between them freely.

Derivatives and futures

Through Kraken Futures (and the March 2025 agreement to acquire NinjaTrader, a retail futures platform, for roughly $1.5 billion), Kraken offers perpetual and fixed-maturity futures with higher leverage for eligible non-US clients. In February 2026 it listed what it described as the first regulated tokenized equity perpetual futures using xStocks, giving eligible clients in 110-plus countries up to 20x leveraged exposure to major US equities, indices, and gold-backed ETFs.

Staking

Kraken lets you stake proof-of-stake assets and earn rewards. It delegates your bonded assets to validators, which produce blocks and validate transactions, then passes rewards back minus a fee. Staked assets are typically locked (bonded) for a network-defined period, so you cannot instantly withdraw them. More on the regulatory history of this product below.

xStocks: tokenized equities

Launched on Solana on June 30, 2025, in partnership with issuer Backed, xStocks are on-chain tokens that each represent one share of a real US-listed stock or ETF, backed 1:1 by the underlying equity and issued as SPL tokens. They started at 60 assets (55 stocks and 5 ETFs, including tokens for Tesla, Apple, and GameStop) and crossed 100 tokenized equities by 2026, with a stated goal of over 500 by year-end. Key mechanics: you can buy fractional amounts, trade 24 hours a day five days a week, and withdraw the tokens to a self-custodial wallet, where they can be used in DeFi. xStocks have reported tens of billions of dollars in cumulative trading volume across venues. The catch: you own a token that tracks a share, not the registered share itself, so voting rights and legal treatment differ from holding the equity directly, and availability is restricted for US persons.

Ink: Kraken's Layer 2

Ink is an Ethereum Layer 2 blockchain Kraken incubated on Optimism's OP Stack, part of the Optimism Superchain alongside chains like Base and Worldchain. It went live on mainnet ahead of schedule with roughly one-second block times and sub-cent average fees, positioning it as one of the newer Superchain networks. The goal is to give Kraken's user base a low-friction on-ramp into DeFi. See the token section below for how INK fits in.

Token, fees, and economics

Does Kraken have a token?

Kraken the exchange has no equity token. The Ink Layer 2 it incubated has, however, announced a native INK token with a fixed supply of 1 billion, to be distributed through Kraken Drops and an airdrop weighted toward genuine on-chain activity and Kraken Pro usage. As of mid-2026 the token generation event had not yet occurred, with the independent Ink Foundation signaling a launch later in the year. Importantly, INK is designed as an incentives token, not a governance token for the chain: because Ink sits inside the Optimism Superchain, governance flows through the Optimism Collective. INK's stated utility centers on powering DeFi incentives across the Ink ecosystem. Treat INK as a planned DeFi-incentive asset tied to one L2, not as a claim on Kraken's business.

Trading fees (Kraken Pro, spot)

Fees fall as your activity rises. As of a July 2026 update (effective July 9), Kraken qualifies accounts for a fee tier by either 30-day spot volume or Assets on Platform (the live USD value of eligible holdings), whichever gives the cheaper rate. That helps large holders who trade infrequently. Note that volume from Instant Buy does not count toward your 30-day volume tier, another reason to use Kraken Pro. Deposit and withdrawal costs vary by method and network; card purchases and some fiat rails add their own fees.

The practical takeaway: Kraken can be very cheap if you use Pro and place limit (maker) orders, and fairly expensive if you only tap Instant Buy.

Security, trust, and track record

Kraken has one of the better security reputations among large exchanges, but it is not without controversy. Be clear-eyed about both.

Proof of reserves

Kraken was an early pioneer of proof of reserves, publishing cryptographic attestations that let users verify their balances are included in the exchange's attested holdings via a Merkle tree. This does not prove Kraken has no undisclosed liabilities, but it is meaningfully more transparency than opaque exchanges provide, and it predates the industry-wide push for reserves proofs that followed the 2022 FTX collapse.

Hack history

No exchange-scale breach has drained customer funds across Kraken's 15-year history, a genuinely strong record. In June 2024 a critical vulnerability was disclosed that could allow inflated balances; it was exploited for roughly $3 million against Kraken's own treasury rather than user funds, and the episode turned into a public dispute with the security firm CertiK over whether its conduct crossed from white-hat testing into extortion. User assets were not lost, but the incident is a reminder that even mature platforms ship bugs.

Regulatory status and the SEC staking settlement

In February 2023, Kraken settled SEC charges that its staking-as-a-service program was an unregistered offer and sale of securities. It agreed to pay $30 million and to shut down US staking, while continuing to offer staking to non-US customers. The SEC also alleged inadequate disclosure of risks on a product that had advertised yields as high as 21%.

The picture shifted under a friendlier US regulatory climate. In March 2025 the SEC dismissed its separate 2023 lawsuit against Kraken with prejudice, and in January 2025 Kraken relaunched an on-chain staking product for US clients across a set of states and territories, covering assets like ETH, SOL, DOT, and ADA. Separately, in 2025 the government closed an FBI probe into co-founder Jesse Powell (unrelated to the exchange's core operations, tied to a private cyberstalking allegation) without charges. Powell stepped down as CEO in 2023, with Dave Ripley taking over, and Powell remaining chairman.

The planned IPO

Kraken confidentially submitted a draft Form S-1 registration statement to the SEC in November 2025 and publicly confirmed the filing in April 2026. Reporting indicated the company paused the process in early 2026 amid market conditions rather than committing to a fixed date, so treat any specific listing date as unconfirmed. An IPO would bring public financial disclosure and scrutiny, which many see as a trust positive, but it does not change the custodial nature of using the exchange.

How to get started (safely)

1. Go directly to kraken.com (type the URL yourself; avoid search ads and links in emails or DMs, which are common phishing vectors).
2. Create an account and complete identity verification (KYC). This is required for fiat deposits and higher limits.
3. Turn on two-factor authentication immediately. Prefer an authenticator app or a hardware security key over SMS, which is vulnerable to SIM-swap attacks.
4. Set a strong, unique password and, if available, add a separate withdrawal password or global settings lock.
5. Fund the account with a small test amount first, using bank transfer for the lowest cost or card for speed at higher fees.
6. For anything beyond a quick purchase, switch to Kraken Pro and use limit orders to pay maker fees instead of Instant Buy's ~1%.
7. Withdraw long-term holdings to your own hardware wallet. Assets left on any exchange are exposed to that exchange's solvency and security.
8. Whitelist withdrawal addresses and keep records for taxes.

Kraken vs. alternatives

Against Coinbase, Kraken usually wins on Pro trading cost and derivatives depth, and it has distinctive products in xStocks and Ink. Coinbase counters with larger US scale, a smoother beginner flow, its already-public status, and a much bigger L2 in Base. Against Binance, Kraken offers stronger US regulatory standing and clearer compliance, while Binance still leads on raw global liquidity and the breadth of listed assets. If your priority is a credible, transparent US exchange with cheap pro trading, Kraken is a natural shortlist pick.

Risks and what to avoid

• Custodial risk. Assets on Kraken are held by Kraken. Proof of reserves reduces but does not eliminate the risk of insolvency, freezes, or withdrawal delays. Not your keys, not your coins.
• Instant Buy overpay. The basic app's ~1% flat fee plus spread quietly costs far more than Kraken Pro limit orders.
• Staking lockups and policy risk. Bonded staking locks assets and remains subject to shifting US regulation; availability varies by state and can change.
• xStocks are tokens, not shares. You get on-chain exposure, not the registered equity, with different rights and restrictions, and US access is limited.
• Leverage. Margin and futures can liquidate your position fast. Most users should avoid leverage entirely.
• Phishing and SIM swaps. The most common way people lose funds is account compromise, not exchange failure.

Safety checklist

• Use an authenticator app or hardware key for 2FA, never SMS alone.
• Bookmark the real URL and never click login links from email or social media.
• Enable withdrawal address whitelisting and any account lock features.
• Keep only trading balances on the exchange; self-custody the rest.
• Start with a small test transaction on any new deposit or withdrawal route.
• Verify proof-of-reserves reports exist, but do not treat them as a full audit.

Glossary

• CEX (centralized exchange): A company-run platform that custodies funds and matches trades on its own order book.
• Kraken Pro: Kraken's advanced trading interface with full order books, advanced order types, and the maker-taker fee schedule.
• Maker / taker fee: Makers add liquidity with resting limit orders and pay less; takers remove liquidity with market orders and pay more.
• Proof of reserves: A cryptographic (Merkle-tree) attestation letting users verify their balance is included in the exchange's reported holdings.
• Staking: Locking proof-of-stake tokens to help secure a network in exchange for rewards, minus a platform fee.
• Bonded staking: Staking where assets are locked for a network-defined period and cannot be withdrawn instantly.
• xStocks: Tokenized equities backed 1:1 by real shares or ETFs, issued on-chain and tradable in fractional amounts.
• Ink: Kraken's Optimism-based Layer 2 blockchain aimed at bringing users into DeFi with fast, cheap transactions.
• INK token: Ink's planned native token (1 billion fixed supply) for DeFi incentives; an incentives token, not a governance token for the chain.
• OP Stack / Superchain: Optimism's shared framework and network of L2s that Ink belongs to.
• KYC: Know Your Customer identity verification required to use regulated exchanges.
• Instant Buy: Kraken's one-tap purchase flow that charges a flat fee plus spread, simpler but costlier than Pro.

Looking ahead

Kraken enters the back half of the 2020s trying to be more than an exchange: a tokenized-equities venue, an L2 ecosystem via Ink, a futures broker after the NinjaTrader deal, and, if conditions cooperate, a public company. The pieces that will matter most are whether xStocks and tokenized markets gain durable regulatory footing, whether Ink attracts real DeFi activity rather than incentive-driven flows, and whether a US listing forces the transparency that would let outsiders judge its finances. For everyday users, none of that changes the core discipline: use Kraken Pro to keep fees low, lock down your account, and move long-term holdings into self-custody.

If you are comparing venues, read our roundup of the best centralized exchanges, our take on the best crypto wallets and best hardware wallets for storing what you buy, and the companion Coinbase guide for a head-to-head look at Kraken's closest US rival.

Related guides

• Coinbase: The Complete Guide
• Gemini: The Complete Guide
• xStocks: Tokenized Stocks You Can Trade On-Chain
• Crypto.com: The Complete Guide
• KuCoin: The Complete Guide