Kraken as Trusted Bridge to DeFi
Arjun Sethi, co-CEO of Kraken, on building the Nasdaq of crypto
This split is really a product strategy for how crypto reaches the mainstream. A trusted exchange is where an operator screens assets, runs custody, manages listings, and makes it easy for someone to move from dollars into crypto, trade, and cash out. An open exchange is the opposite, where the rails stay permissionless and anyone can launch markets or apps. Kraken is trying to sit on the trusted side while still plugging users into the open side through products like Ink and stablecoin rails.
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Kraken has spent years building the traits of a trusted venue, security, custody, fiat on and off ramps, and deliberate listing standards. That is why it is positioned as the clear number two trusted U.S. exchange behind Coinbase, rather than the fastest moving venue for every new token or trading primitive.
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The business reason for staying trusted is economic, not just regulatory. Kraken generated about $1.5B of revenue in 2024, with ARPU of $2,023, well above Coinbase at $825 and Robinhood at $164, which shows its best customers are serious traders and institutions who pay for reliability, liquidity, and professional tools.
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The open side still matters because it is where new behavior forms first. Kraken has long argued that usage on decentralized exchanges expands the whole market, and now frames Ink as the bridge that lets users reach DeFi yield, payments, and on chain apps without needing to manage raw wallet complexity themselves.
The market is heading toward a two layer structure. Regulated, high trust exchanges will look more like financial utilities for custody, liquidity, and compliance, while open networks keep acting as the lab for new assets and apps. The winners will be the platforms that can connect both layers without forcing users to learn the hard parts of crypto.