Kraken Withdrawal Issues Pile Up Ahead of Nasdaq Listing

Kraken, one of the largest cryptocurrency exchanges, experienced yet another technical issue on Tuesday. The exchange told customers that withdrawals were stuck, which is a second service fault in just one day. This notice came after 2 p.m. UTC.

Kraken claims to have identified the cause of the problem but has not provided any further information, including what exactly broke or when it expects to resolve the issue. The exchange's status page lists 23 of its 725 funding services as degraded, although most of these problems date back to before Tuesday.

The affected services include Cosmos (ATOM) and Celestia (TIA), which were also impacted by a deposit pause on September 4. This incident remains unresolved. Kraken's parent company, Payward, is planning to list its shares on the Nasdaq and London Stock Exchange in the future but has delayed its initial public offering (IPO) until 2027.

Institutional clients rely heavily on an exchange's ability to process transactions quickly and efficiently. With a series of funding faults, Kraken may struggle to convince these clients that it is a reliable choice for their investment needs.