Kraken introduces equity-based rewards to boost trading liquidity

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Yaroslav Dmytrenko

01.12.2025

Kraken introduces equity-based rewards to boost trading liquidity — Institutional traders gain warrants through Kraken’s new program

Starting December 1, Kraken becomes the first among market participants to launch a trading activity incentive program linked to the crypto exchange’s shares.

The market participation program features a transparent, time-limited structure designed for large institutional clients to encourage increased trading activity and greater contributions to liquidity.

Participants who meet specific trading volume thresholds and compliance standards receive warrants, which act as contracts granting the right to purchase shares at a predetermined exercise price before expiration. These warrants vest over time and are converted into shares upon exercise, with the company typically issuing new shares following conversion.

This structure promotes deeper liquidity and order book stability without using direct cash rebates or traditional maker-taker fee adjustments.

The first of its liquidity-building strategies

Kraken positions this equity-linked mechanism as unprecedented among major exchanges, offering active traders access to future shares of a private company preparing for a potential initial public offering in 2026. The value of each warrant remains directly tied to Kraken’s private market valuation and the eventual public listing price.

Only high-volume institutional clients that undergo regular compliance checks and meet strict regulatory requirements are eligible for the program. Interested parties must contact their Kraken account manager to begin the application process.

The program includes ongoing compliance reviews to ensure participants consistently meet trading volume thresholds and regulatory standards throughout their participation period.

Liquidity providers and market-making firms are among the primary beneficiaries, as the order-based structure offers additional income streams beyond traditional commission models.

The initiative aims to support sustainable markets that benefit both retail and professional traders by improving price efficiency and tightening spreads. Deep liquidity and efficient order books remain critical factors in attracting institutional players that require reliable execution for large trades.

Kraken views this program as the first stage of broader liquidity strategies designed to create mutually beneficial relationships, in which traders increase market depth while receiving equity-linked rewards.

The move is expected to strengthen Kraken’s competitiveness in the race for liquidity among exchanges, although data on how trading volumes changed on December 1 following the program’s launch has not yet been released.

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