Kraken is in talks to raise new funding in a move that would more than double the cryptocurrency exchange’s valuation to more than US$10bil, according to a person familiar with the matter.

The San Francisco-based company, founded by Chief Executive Officer Jesse Powell in 2011, is in discussions with firms including Fidelity, Tribe Capital and General Atlantic, said people familiar with the matter, who requested anonymity because the talks are private. Terms, including lead investors, aren’t final, but Kraken’s valuation could surpass US$20bil depending on demand, one of the people said.

Representatives for Kraken, Tribe Capital, General Atlantic and Fidelity declined to comment.

Attention on crypto as an asset class is soaring. Earlier Thursday, Kraken’s larger rival Coinbase Global Inc., which has been valued at nearly US$100bil , filed for a direct listing, citing skyrocketing revenue growth.

Crypto exchanges have gained users as Bitcoin rallied in the past year, and set a record of more than US$58,000 this week. Crypto exchanges make their revenue off of transaction fees, and have benefited a surge in trading volume.

Kraken, which is subject to US regulation, offers coins including Bitcoin, Ethereum and Litecoin, its website shows. The company in 2019 leaned on investment platform Bnk to the Future to raise US$13mil at a roughly US$4bil valuation.

Kraken facilitates margin trading and is one of the largest US crypto exchanges by spot trading volume, according to CoinMarketCap.com. It’s also a top-10 crypto exchange globally in Bitcoin futures, according to tracker Skew.com.

 - Bloomberg