Kraken to Launch New Colocation Service

Crypto exchange Kraken plans to launch a new colocation service in the coming weeks that will offer clients ultra-low latency trading, the company said in a press release Monday.

The service is aimed at customers who need high-speed execution. Traders operating out of London can expect latency of under a millisecond.

> “Many exchanges offer colocation services, but Kraken’s approach is unique – we’re making it accessible to all partners and clients, not just institutions,” said Shannon Kurtas, head of exchange at Kraken, in the release.

Trading relies heavily on speed, especially in volatile markets like crypto, where a fraction of a second can make a significant difference. Low latency services utilize sophisticated technology, allowing traders to execute orders in less than a millisecond.

> “Colocation services in crypto are typically not widely accessible,” Kurtas noted. “Kraken, however, has structured its offering to prioritize fairness and accessibility. Our colocation service will be available to all clients, aligning with crypto’s core values of an open, fair, and transparent marketplace.”

In addition to individuals and institutions who trade directly on Kraken, the company also collaborates with brokers, exchanges, and fintech firms that utilize their liquidity for their own products. These partners will also have access to colocation services once they become available.

The exchange’s clients will have access to ultra-low latency trading from Kraken’s European data center by renting cloud compute resources from Beeks (BKS), a U.K.-listed cloud computing and connectivity provider.

Select clients will be able to install physical hardware at Kraken’s data center and access colocation services directly, the exchange indicated.

Additionally, the crypto firm is contemplating launching an initial public offering (IPO) by the first quarter of 2026, believing that the regulatory landscape in the U.S. has evolved enough to make a public listing feasible, according to Bloomberg’s earlier reports.

Read more: SEC Plans to Drop Its Case Against Kraken, Firm Says