Kraken’s ambitions to go public in the United States may experience a significant delay, potentially pushing its initial public offering (IPO) back to 2027. The exchange, officially known as Payward, recently announced layoffs affecting approximately 150 employees, a decision that has reportedly impacted their IPO timeline, according to sources cited by Bloomberg.

Adjusting Strategic Plans

For several months, Kraken had been making preparations for a public listing. The exchange submitted a confidential filing with U.S. regulators late last year. However, those plans encountered a setback in March due to a downturn in cryptocurrency prices.

During a recent conference, Co-ceo arjun sethi confirmed the existence of the filing but refrained from providing specific timelines. Recent reports now suggest that the IPO is unlikely to occur before 2027.

The layoffs were influenced by Kraken’s increased adoption of artificial intelligence in various aspects of its operations. While the source highlighted the expanded use of AI throughout the company, no additional job reductions are currently anticipated.

The Broader Impact on the Crypto Industry

Kraken is not the only player in the cryptocurrency market facing challenges. This year, the sector has collectively reduced its workforce by over 5,000 jobs, with many companies citing AI implementation as a primary factor. For instance:

• Coinbase downsized by 700 employees, roughly 14% of its workforce, in early May.
• Gemini and Crypto.com also experienced cuts, letting go of approximately 200 and 180 staff members, respectively, earlier this year.
• Moreover, Block Inc. made the most substantial cut, eliminating roughly 4,000 positions, which is about half its total staff.

Additionally, the crypto intelligence firm Dune announced a reduction in its workforce, laying off a quarter of its employees as it pivots focus to essential products.

The weakened market conditions have further exacerbated these challenges. After experiencing a decline since late 2025, several publicly traded cryptocurrency firms reported losses in their first-quarter earnings.

@arjunsethi CEO of @krakenfx discusses the company’s confidential plans to go public.

“Are there plans to take Kraken public soon?”

“Uh, we confidentially filed.”

“Oh, is that news?”

“I believe that’s news.” pic.twitter.com/QJRH8YStMA

— Semafor (@semafor) April 14, 2026

Future Considerations for Kraken

Kraken has yet to publicly comment on the recent layoffs or its adjusted IPO timeline. Media inquiries directed at the company did not yield responses before publication.

Currently, Kraken appears to be streamlining its operations in anticipation of improved market conditions. Whether a recovery will occur in time to allow for a public offering in 2027 remains uncertain.

As one of the largest cryptocurrency exchanges in the U.S., Kraken’s potential listing is being closely monitored by industry analysts and stakeholders alike.

Featured image from DL News, chart from TradingView