VanEck, Kraken Rewrite the Rules of ICOs

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Grab a coffee as familiar names from Wall Street and the digital asset space step forward with a new vision that blends traditional structure with blockchain openness.

Crypto News of the Day: VanEck and Kraken Signal a New Chapter for Onchain Fundraising

Crypto fundraising is entering a new era, as VanEck and Kraken throw their weight behind Legion.

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The move, marked by Legion’s $5 million seed round co-led by VanEck and Brevan Howard, signals a sharp turn in how capital formation may change in digital markets.

In an exclusive with BeInCrypto, Juan C. Lopez, General Partner at VanEck Ventures, described Legion as a potential catalyst for a new era of compliant, globally scalable ICOs (initial coin offerings).  

For Lopez, the opportunity is about reshaping the opaque structure of private markets.

“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. The opportunity with Legion goes beyond crypto. It’s about enabling companies to raise capital instantly from aligned investors while letting retail invest early and have skin in the game,” Lopez explained.

Founded in 2023, Legion aims to fuse the rigor of traditional IPOs (initial public offerings) with the accessibility of ICOs.

Compliance is baked directly into smart contracts, while disclosures are automated throughout the token lifecycle.

This alignment creates equal footing for institutional and retail participants. It addresses what Lopez called “persistent opacity and limited disclosures” in today’s markets.

Coinbase Ventures, GSR, Crypto.com Capital, and Kraken exchange joined the raise, which includes $1 million set aside for community allocations.

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Legion’s model could bridge the divide between Wall Street credibility and blockchain openness. Such a move would create an environment where tokenized assets and hybrid equity rounds evolve under transparent, regulated frameworks like Europe’s MiCA.

Kraken to Make ICOs More Like IPOs

The Kraken exchange has also extended Legion’s compliance-first fundraising model directly to its global customer base.

Millions of users will gain access to transparent token sales that integrate Legion’s merit-based allocation system. For many retail investors, this could be the closest crypto equivalent to IPO participation.

However, Brett McLain, Head of Payments and Blockchain at Kraken, indicated there will be sharper disclosures and community-driven access.

“Kraken is building the foundation of tomorrow’s financial infrastructure with crypto at its core,” read an excerpt in the press release, which cited McLain.

Together with Legion, Kraken is scaling a product that democratizes token sales and aligns communities with builders.

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“It’s not just better fundraising, it’s better infrastructure for the next generation of finance,” McLain added.

Unlike previous ICO booms that rewarded bots and speculative inflows, Legion’s system evaluates participants by industry contributions.

Developers with open-source commits, DeFi users, and active community leaders can be prioritized over passive wallets.

The partnership also ensures sales are MiCA-compliant, with strong due diligence and disclosure requirements.

Whitepapers, allocations, and investor protections are standardized to eliminate hidden deals and insider advantages.

“The next Figma or Reddit won’t IPO. It will launch to its community on-chain. This partnership makes that possible,” Legion Co-Founder Matt O’Connor said.

Kraken’s backing adds scale and liquidity, giving founders Wall Street-level transparency and retail distribution.

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For investors, it offers regulated, trusted access to early-stage opportunities previously gated by venture insiders.

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