IPO-ready Kraken announces MoneyGram deal as banks take on crypto in CLARITY showdown

Cryptocurrency exchange Kraken has joined forces with MoneyGram in a deal that will let users turn their digital coins into physical cash at hundreds of thousands of locations around the world.

The partnership, announced Tuesday, gives Kraken’s customers access to MoneyGram’s network of almost 500,000 retail spots spread across roughly 200 countries and territories. The service will work in more than 100 countries and support withdrawals in hundreds of different local currencies.

The companies have divided their responsibilities as per the arrangement. Kraken will be signing up customers and verifying identities. MoneyGram provides licensed transaction services through its regulated payment system.

The service will be launched in the US first, followed by Europe, Latin America, Africa, and parts of the Asia Pacific region.

The current deal marks just the first step in what both companies describe as a larger partnership. Future additions will include deposits to local banks and money transfers similar to traditional remittance services through Kraken’s Krak global money app.

Exchange says it’s nearly ready for public markets

During the same event where the partnership was discussed, Sethi shared updates on Kraken’s plans to become a publicly traded company.

Speaking at Consensus Miami 2026, he said Kraken is “80% ready” to go public. The company submitted confidential paperwork to the Securities and Exchange Commission back in November, but hit pause on its initial public offering in March when market conditions turned sour.

“We’re ready,” Sethi said, pointing to improvements in cost control and automation across the company.

Over the past year, Kraken has also bought futures exchange NinjaTrader and derivatives platform Bitnomial as it works to grow beyond simply buying and selling of cryptocurrencies.

According to company statements, most of the preparation work is done. Company leaders say the remaining work involves less about getting ready and more about picking the right moment.

Kraken previously raised $800 million in funding at a reported value of $20 billion, with backing from firms including Citadel Securities. But changing market conditions have put pressure on valuations across the sector, forcing several cryptocurrency companies to rethink their timing.

Banks face setback as Senate moves toward crypto bill

Meanwhile, traditional banks appear headed for a major loss in their fight against cryptocurrency companies in Washington. Senators are preparing to advance a bipartisan deal that would end a dispute between banks and crypto firms over how digital currency companies can reward customers, clearing the path for a landmark crypto bill to move forward this month.

The outcome shows how the cryptocurrency sector, still relatively new to Washington lobbying, is overtaking the banking industry’s long-standing influence.

While banks have benefited from friendlier regulators appointed by Republicans during the second Trump administration, they have spent much of the last two years battling upstart crypto companies that have spent hundreds of millions of dollars on political and lobbying efforts.

The latest battle between the two industries centers on whether certain crypto companies should be allowed to offer rewards programs that pay an annual percentage yield to customers who hold stablecoins, a type of cryptocurrency designed to stay at a $1 value.

Both sides describe the issue as critical to their survival. Banks say the rewards programs let crypto companies copy interest-bearing bank accounts and could cause customers to move their money out of traditional banks and into crypto platforms. Crypto companies have pushed back, arguing that banks are trying to “ban” their competition.

The dispute has slowed progress on the crypto industry’s biggest goal on Capitol Hill for a sweeping bill to set up a largely industry-friendly set of regulations that will bring cryptocurrency closer to mainstream finance.

If you're reading this, you’re already ahead. Stay there with our newsletter.