Kraken has reportedly paused its planned initial public offering, shelving a deal that had been expected in the first quarter of 2026.

CoinDesk, citing two people familiar with the matter, said the crypto exchange is still considering going public but is unlikely to proceed until market conditions improve.

IPO plans delayed

Reuters said it could not independently verify the report.

A Kraken spokesperson declined to comment further on the matter, though the company had previously confirmed it confidentially filed for a U.S. IPO in November 2025.

That filing had positioned Kraken as one of the most closely watched potential listings in the digital asset sector.

Market backdrop worsens

The delay comes as crypto-linked equities have faced a tougher environment after a sharp market reversal in late 2025.

Several digital asset firms had gone public during a stronger stretch for the sector, but post-listing performance weakened after the October sell-off.

At the same time, bitcoin has remained well below its prior peak, trading around levels far beneath its October all-time high, according to the bitcoin price history chart.

That backdrop has made timing more difficult for firms whose valuations are closely tied to trading activity and broader crypto sentiment.

Kraken broadens its business

Kraken began as a crypto-focused exchange, but in recent months it has expanded into other asset classes.

The company has rolled out commission-free equities trading as it tries to diversify beyond digital assets and build a broader financial services platform.

Its decision to wait suggests Kraken is preserving flexibility rather than forcing a listing into a weaker market.

For now, the exchange appears to be keeping its IPO option open while watching for a more stable window.