Kraken Launches Private Trading Markets for Individual Investors

Introducing the US Crypto News Morning Briefing—your vital summary of today’s key crypto developments.

Pour yourself a coffee because a subtle transformation is occurring in crypto fundraising. For a long time, private markets catered to insiders with privilege and substantial resources. Now, a new collaboration seeks to offer everyday investors equal opportunities.

Crypto News of the Day: Kraken to Transform ICOs with IPO-Grade Compliance

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A field previously dominated by insiders is set to become accessible to a wider audience. Legion, a fundraising platform designed for crypto, has teamed up with Kraken exchange to facilitate compliant token sales for millions of retail investors around the globe.

“In collaboration with Legion, we’re developing a product that democratizes token sales and unites communities with developers,” stated Brett McLain, Head of Payments and Blockchain at Kraken.

This initiative follows Legion’s $5 million seed funding round, co-led by VanEck and Brevan Howard, as noted in a recent publication by US Crypto News. Coinbase Ventures also participated in this round.

In contrast to traditional fundraising avenues, Legion integrates compliance within smart contracts, automating disclosures and ensuring that sales comply with regulatory standards such as Europe’s MiCA (Markets in Crypto Assets).

As per the announcement shared with BeInCrypto, Legion will prioritize allocations for builders, developers, and community leaders rather than affluent investors.

Contributions to open-source projects, DeFi involvement, or general industry engagement will influence access.

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“Our goal with Legion is to ensure tokens are placed in the hands of true believers rather than just the wealthy. The size of your wallet isn’t the focus; it’s your contributions to the industry or project that count,” said Fabrizio Giabardo, Co-Founder of Legion, in the announcement.

With Kraken Launch, Legion’s token sales will have worldwide reach and liquidity. Joint offerings will be available on both platforms simultaneously, with tokens tradeable on Kraken soon after the sale.

Up to 20% of allocations will be held for Legion Score participants, with other allocations available on a first-come, first-served basis.

VanEck Ventures, one of Legion’s early supporters, views this approach as a means to address longstanding inequities in private markets.

“Challenging the existing structure of private markets is arguably one of the toughest undertakings we’ve ever embarked on. The reality is that top companies select their investors, which unfortunately limits the potential upside to insiders,” remarked Juan C. Lopez, General Partner at VanEck Ventures, in a conversation with BeInCrypto.

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He also highlighted that the opportunity presented by Legion extends beyond crypto—it’s about enabling two key aspects.

For firms, the ability to quickly access capital from mission-aligned investors with a click of a button.

For investors, the chance to invest early in their favorite companies and be part of the action.

As regulatory bodies work to shape token markets, the partnership marks a new era in crypto fundraising, allowing retail investors to join venture capitalists in influencing new initiatives.

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