FILE PHOTO: Kraken cryptocurrency exchange logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Kraken, one of the world's largest cryptocurrency exchanges, said on Wednesday it has confidentially filed for an initial public offering in the U.S., as digital asset companies look to tap the new listings market before the 2026 midterm elections.

Companies such as stablecoin issuer Circle and crypto exchange Gemini have seen renewed success in going public in the U.S. this year under a crypto-friendly Trump administration.

The announcement comes a day after Kraken said it was valued at $20 billion in its latest fundraising, a 33% increase in under two months.

Analysts expect crypto companies to try and go public before the midterm elections next year, which could reshape the landscape for the digital asset industry.

Crypto-focused asset manager Grayscale and custody startup BitGo are among the companies currently in the IPO pipeline.

U.S. President Donald Trump, who has pledged to make America the "crypto capital of the world", signed the Genius Act into law earlier this year. Other measures such as the proposed Clarity bill, aimed at establishing a regulatory framework, have also buoyed sentiment in the digital asset sector.

Founded in 2011, Kraken said the number of shares to be offered and the price range have not yet been determined. Its clients can trade more than 450 digital assets, fiat currencies, and traditional assets.

(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)