Kraken Parent Payward Posts Q1 Revenue Growth Despite Crypto Market Slump

Payward, the parent of cryptocurrency exchange Kraken, which was founded in 2011, is expanding in derivatives, payments and stablecoins to reduce its reliance on spot trading. Its fundraising valuation and operational streamlining will directly affect the pricing of a future U.S. IPO and investor confidence.

Payward was reported on May 8, 2026, to be in talks for a new funding round at a $20 billion valuation. On May 14, reports emerged that it was cutting about 150 jobs, equivalent to 5% of its workforce of nearly 3,000. The company is also pursuing acquisitions, buying Bitnomial for $550 million and Reap for $600 million as it broadens its business ahead of a listing.

Bitnomial is a U.S. crypto-native derivatives exchange with three types of CFTC authorization: futures commission merchant, designated contract market and derivatives clearing organization. The acquisition allows Payward to integrate trading, brokerage and clearing, reducing its reliance on third-party platforms and expanding Kraken's presence in regulated U.S. markets.

Payward announced the acquisition agreement on April 17, 2026, and completed the transaction on May 1. It paid up to $550 million in cash and stock, with Payward equity valued at $20 billion for the deal. The company plans to launch spot margin services on Kraken and NinjaTrader first, followed by perpetual contracts and options.