Kraken to Open Private Markets to Everyday Investors | US Crypto News

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Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee because a quiet shift is happening in crypto fundraising. For years, private markets favored insiders with access and deep pockets. Now, a new partnership aims to allow everyday investors to participate on equal terms.

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

A sector once dominated by insiders may soon open to the broader public. Legion, a crypto-native fundraising platform, has partnered with Kraken exchange to bring compliant token sales to millions of retail investors worldwide.

“Together with Legion, we’re scaling a product that democratizes token sales and aligns communities with builders,” said Brett McLain, Head of Payments and Blockchain at Kraken.

The move follows Legion’s $5 million seed round, which was co-led by VanEck and Brevan Howard, as indicated in a recent US Crypto News publication. Coinbase Ventures participated in the round.

Unlike traditional fundraising platforms, Legion embeds compliance directly into smart contracts, automating disclosures and ensuring sales align with regulatory frameworks such as Europe’s MiCA (Markets in Crypto Assets).

Based on the announcement shared with BeInCrypto, Legion will prioritize allocation for builders, developers, and community leaders rather than deep-pocketed whales.

Contributions to open-source code, DeFi participation, or industry engagement help determine access.

“We started Legion to see tokens go to true believers, not just the wealthy. The size of your wallet isn’t what matters. What matters is how you’ve contributed to the industry or project itself,” read an excerpt in the announcement, which cited Fabrizio Giabardo, Co-Founder of Legion.

On Kraken Launch, Legion’s token sales will gain global reach and liquidity. Joint offerings will roll out simultaneously on both platforms, with tokens tradable on Kraken shortly after the sale.

Up to 20% of allocations will be reserved for Legion Score participants, while the rest will be available on a first-come, first-served basis.

VanEck Ventures, one of Legion’s earliest backers, sees the approach as addressing long-standing imbalances in private markets.

“Fighting the current market structure in private markets is probably one of the most challenging efforts we have ever signed up for. The reality is the best companies want to pick who their investors are… the downside of this is that all the upside is kept for insiders,” Juan C. Lopez, General Partner at VanEck Ventures, told BeInCrypto.

He also noted that the opportunity with Legion goes beyond crypto. It’s about enabling two things.

For companies, the ability to tap a button and receive capital as quickly as possible from investors aligned with their mission.

For investors, it’s the ability to invest in their favorite companies early and have a stake in the game.

As regulators seek to structure token markets, the partnership signals a new chapter for crypto fundraising. Here, retail investors can join venture capital in shaping new projects.