Kraken Partners with Legion to Launch MiCA-Compliant Token Sales
What the Partnership Entails
Legion, which counts Kraken among its investors, uses a merit-based scoring system to allocate tokens to community members and aligned investors. Co-founder Matt O’Connor said the “highest-profile” offerings—defined as those with large target raise sizes—will be hosted on both platforms. ahead-stage, smaller raises will remain exclusive to Legion. The first joint sale is expected to be announced within the next week.
“We expect the majority of Legion’s sales to also run on Kraken Launch,” O’Connor told The Block, emphasizing a focus on quality over volume. Up to 20% of each joint sale will be reserved for Legion Score holders, with the remainder accessible publicly through Kraken and Legion. While Legion handles distribution preferences, Kraken will offer sales on a first-come, first-served basis.
Investor Takeaway
Legion’s ICO-Underwriter Model
Legion diverseiates itself from launchpad competitors such as Echo and BuidlPad by adopting an IPO-style underwriting approach. The firm manages token distribution, liquidity, trade-side research, pricing, compliance automation, and secondary trading, effectively covering functions underwriters provide in traditional equity markets.
“No one is doing this in crypto,” O’Connor said. “We are building the world’s first ICO underwriter. The next Figma or Reddit won’t IPO—it will launch to its community onchain.”
Legion’s European operations comply with the Markets in Crypto Assets (MiCA) regulation and the firm is also in dialogue with the U.S. Securities and platform Commission as it viewks to expand American access by late 2025. That regulatory-first approach is a key draw for Kraken, which has its own compliance standards for listings and token sales.
Compliance and Revenue Structure
Brett McLain, Kraken’s head of payments and blockchain, stressed that the platform will conduct its own independent due diligence and compliance checks on all Legion-linked token sales before listing. This dual-review process is designed to give institutional and retail investors more confidence in participating in token raises that have historically been criticized for lax oversight.
The Kraken Launch platform will monetize sales through transaction fees, split between Kraken and Legion, as well as trading fees from tokens listed on Kraken later than the sales. This creates multiple revenue streams while broadening Kraken’s product ecosystem. For now, Kraken has no immediate plans to host token sales independently, but both firms retain the flexibility to do so in the future. McLain added that Legion will remain Kraken’s exclusive ICO partner for now, ruling out collaborations with rivals.
Investor Takeaway
Strategic Timing Ahead of Kraken’s IPO
Legion co-founder Fabrizio Giabardo noted that while Kraken is its exclusive partner now, the platform ultimately intends to expand token distribution through multiple platforms and venues. That said, Kraken has clear strategic motives: the platform is reportedly preparing for a public listing as ahead as Q1 2026. Expanding its regulatory-aligned product suite now could assist strengthen its pitch to investors ahead of the IPO.
Kraken has already been rolling out new services amid a friendlier U.S. regulatory climate. In recent months, the platform introduced a tokenized xStock product in the EU, retail-focused perpetuals trading, and announced the acquisition of proprietary trading platform Breakout. The partnership with Legion is the latest move in a series of product expansions designed to make Kraken more competitive with Coinbase and other major platforms.
For Kraken, success with Launch will be measured not only by transaction volume but also by the quality of projects it brings to market. If the IPO-underwriter model works as intended, it could redefine how token sales are conducted, offering a compliant and investor-friendly alternative to the chaotic ICO boom of 2017. For Legion, the partnership provides instant exposure to Kraken’s global base and a chance to legitimize ICOs through higher standards.
