U.S. crypto exchange Kraken is reportedly seeking to raise $500 million in a new funding round that would value the firm at a staggering $15 billion.
This move, picked up across financial media, signals that institutional appetite for centralized crypto infrastructure is heating up yet again.
But behind the headlines and billion-dollar valuations, one truth remains unchanged: if you don’t control your keys, you don’t control your crypto.
This has led many investors to ask themselves: what are the best Kraken alternatives with self-custody.
To answer that, we need to understand the growing gap between centralized growth and decentralized principles.
The Centralized Surge
Kraken is one of the most established centralized exchanges in the crypto space, offering fiat on-ramps, staking, margin trading, and custodial services.
While it’s known for its regulatory compliance and security record, it’s still a custodial platform, meaning your coins are stored on Kraken’s servers, not in a wallet you control.
This new round of funding is likely aimed at expanding Kraken’s reach: acquiring smaller firms, improving product offerings, and positioning itself for a potential IPO in 2026.
All good news, for investors in Kraken. But it does little for users who believe in the original purpose of crypto: self-sovereignty.
Exchange Custody vs. Self-Custody
Kraken’s growth highlights a fundamental dilemma in crypto adoption:
- Centralized platforms such as exchanges are convenient, familiar, and liquid.
- Self-custody alternatives such as a private wallet are more secure, decentralized, and trustless.
As exchanges like Kraken raise hundreds of millions to scale, the crypto industry runs the risk of falling back into the very system it was designed to escape, the one built on middlemen and third-party trust.
That’s why, no matter how sleek the interface or how reputable the brand, the rule still applies: not your keys, not your coins.
Relying on custodial platforms puts users one step away from the kind of vulnerabilities traditional finance is infamous for: account limits, third party overreach, and withdrawal halts during exchange hacks.
Exchanges are a prime target for hackers, and if an exchange is hacked as BigOne was this month it will invariably disable withdrawals in order to prevent further losses.
Long Term Sovereignty
Every time a centralized exchange gets hacked, the case for self-custody gets stronger.
Kraken and similar alternative exchange platforms can still serve as fiat on/off-ramps or short-term holding solutions, but they should be treated as temporary transit hubs, not long-term vaults.
For long-term holding and real financial sovereignty, tools like wallets are the way to go.
Kraken might raise $500 million. It might IPO. But it’ll never offer what Bitcoin was built to deliver: trustless ownership.
As centralized platforms scale, they also face increasing regulatory pressure. Governments can demand user data, freeze accounts, or force delistings. A self-custody wallet, on the other hand, puts you outside that perimeter.
And with the growing availability of user-friendly self-custody tools in 2025, long-term sovereignty is no longer just for the technically inclined. It’s for anyone who takes ownership seriously.
Best Kraken Alternatives
Many argue that since cryptocurrency itself is fundamentally rooted in financial freedom, Kraken’s centralized approach stands in direct contradiction to the industry’s core principles.
That explains why they are increasingly gravitating towards self-custodial alternatives they can truly control. In particular, one brand dubbed Best Wallet has emerged as a standout choice, thanks to its multichain, no-KYC, and non-custodial features.
Unlike Kraken and other centralized exchanges, Best Wallet allows users to store, buy, trade, and swap thousands of assets without undergoing identity verification, reinforcing its appeal among those who prefer financial privacy.
However, the absence of KYC does not mean users are left to shoulder the responsibility of securing their funds entirely on their own. For instance, it has integrated cutting-edge tools like Fireblocks, which leverages non-custodial MPC technology to ensure that all assets held inside the wallet remain safe and under user’s full control.
Beyond its self-custodial, security-focused design, Best Wallet is also shaping up to become a one-stop shop for all things crypto, offering modern features like fiat payments, cross-chain swaps, staking perks, portfolio management, and even a token launchpad.
It is not without reason that this wallet has amassed over 500,000 users within a short timeframe, with nearly 630% MoM growth in app installations. Many analysts, including ClayBro, have reviewed its features on their YouTube channels, describing it as the best self-custody wallet to use in 2025.
Visit Best Wallet
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