A spokesperson for Kraken declined to comment on the report.
The deal, which is subject to market conditions, would follow the company's $500 million fundraising round at a $15 billion valuation earlier this year, the report added.
Investor interest in cryptocurrency firms has been rising as the asset class benefits from clearer regulations and broader institutional adoption.
This trend has pushed some crypto firms to go public, including stablecoin issuer Circle, blockchain lender Figure and crypto exchange Bullish, all of which were well received during their market debuts.
Kraken, founded in 2011, is a major global crypto exchange offering spot, margin and derivatives trading. It supports more than 200 assets, eight fiat currencies, and serves over nine million traders and institutions worldwide, according to its website.
