Kraken Partners with Circle: A Strategic Partnership Reshaping the Stablecoin Ecosystem
The cryptocurrency ecosystem has just experienced a major turning point with the announcement of a strategic partnership between Kraken, one of the world’s most respected exchange platforms, and Circle, the undisputed leader in stablecoins. This alliance, formalized in September 2024, promises to transform the user experience for USDC (USD Coin) and EURC (Euro Coin) stablecoins on the Kraken ecosystem.
In brief
- Kraken and Circle announce a major agreement aimed at strengthening the integration of USDC and EURC stablecoins on the Kraken platform.
- The partnership objectives are: increase stablecoin liquidity, reduce conversion fees, and offer new opportunities through Kraken applications.
- Kraken, with over 7 years of experience, and Circle, leader of stablecoins with a capitalization of 31.2 billion euros, dominate the market.
- The partnership enables reduced conversion fees and a better user experience on Kraken, with DeFi applications and cross-border payment services.
The Contours of an Ambitious Partnership
Founded in 2011, Kraken serves more than 15 million institutions, professional traders, and consumers, offering transactions on over 500 digital assets, traditional assets, and six national currencies.
A Collaboration with Clear Objectives
The partnership between Kraken and Circle (NYSE: CRCL) primarily aims to expand access and increase the utility of USDC and EURC stablecoins on the Kraken platform. This collaboration is structured around three main pillars:
- Increased liquidity for Kraken customers ;
- Reduced conversion fees on USDC transactions ;
- New opportunities for stablecoin deployment across Kraken applications.
Mark Greenberg, Global Head of Consumer Business at Kraken, explains the philosophy behind this partnership: “Expanding support for Circle products isn’t about checking boxes. It’s about integrating new opportunities to benefit from Circle-issued stablecoins in products our customers already use and trust.”
The Introduction of EURC: A First for Kraken
One of the most innovative aspects of this partnership lies in the introduction of EURC on the Kraken platform. This euro-pegged stablecoin, fully collateralized by Circle, opens new perspectives for European users and those seeking exposure to the European currency.
| Stablecoin | Reference Currency | Approximate Market Cap | Status on Kraken |
| USDC | US Dollar | ~$73.5 billion | Enhanced |
| EURC | Euro | ~€60 million | New introduction |
A Market Context Favorable to Stablecoins
Kraken: A Historic Player in Stablecoins
Kraken is no stranger to the stablecoin universe. The platform has been offering stablecoins since 2017 and reports consistent growth in demand. According to the company’s official data, its stablecoin market share has accelerated over the past year, rising from 43 % to 68 % of stable-fiat spot volumes in Q2 2024.
This performance is explained by several factors:
- Improved regulatory clarity on a global scale ;
- Growing user confidence in the stablecoin category ;
- Increasing use of the platform for trading and payments.
Circle: Confirmed Market Leadership
Circle, with its market capitalization of €31.2 billion, establishes itself as the undisputed leader in the stablecoin market. USDC, its flagship product, represents the second-largest US dollar-pegged stablecoin in the world.
Circle’s recent performance has been particularly remarkable:
- 62 % stock growth over the past six months ;
- Q2 2025 quarterly results exceeding expectations ;
- Revenue from subscriptions and services surpassing estimates.
Technical and Operational Impact of the Partnership
Integration into the Kraken Ecosystem
The partnership is not limited to simply adding tokens. It involves a deep integration of Circle stablecoins throughout the entire Kraken ecosystem, including:
- Advanced trading services via Kraken Pro ;
- Kraken Pay payment solutions ;
- Investment and yield farming products ;
- Institutional services for professional clients.
This holistic approach allows Kraken’s 15 million users (institutions, professional traders, and consumers) to fully benefit from the advantages of Circle stablecoins.
Fee Reduction: A Major Competitive Advantage
One of the immediate benefits of this partnership lies in the reduction of conversion fees for USDC users. This cost optimization represents a significant competitive advantage in a market where fees often constitute a barrier to adoption.
Strategic Analysis and Market Implications
Strengthened Competitive Positioning
This partnership comes in a context of increased competition in the stablecoin market. Recently, Hyperliquid announced the launch of its own USDH stablecoin, creating concerns among analysts regarding USDC’s dominant position.
The Kraken-Circle alliance strategically responds to this competitive pressure by:
- Strengthening the USDC ecosystem through deeper integration ;
- Diversifying the offering with EURC to capture European markets ;
- Improving user experience through reduced fees.
Evolution Prospects and Future Opportunities
DeFi Applications and On-Chain Finance
The partnership is part of a broader vision for developing on-chain finance. Kash Razzaghi, Chief Commercial Officer at Circle, emphasizes this ambition: “Expanding access to Circle products across Kraken’s established ecosystem can help extend the benefits of stablecoins to their millions of users.”
Future developments could include:
- Integration with major DeFi protocols ;
- Optimized yield farming solutions ;
- Stablecoin-based derivative products ;
- Enhanced cross-border payment services.
Geographic and Regulatory Expansion
The introduction of EURC marks a clear geographic expansion strategy. This multi-currency approach allows Kraken to better serve its international clientele while respecting local regulatory specificities.
FAQ - Frequently Asked Questions
Kraken has indicated that detailed information about the expanded products will be shared in the coming months, with no specific date.
EURC availability will depend on local regulations and Kraken’s licenses in each jurisdiction.
The conversion fee reduction will specifically concern USDC transactions, with details to be specified.
No, Kraken continues to support over 500 digital assets, including other stablecoins.
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