Kraken Parent Payward Seeks Funding at $20 Billion Valuation Ahead of IPO

Payward, the parent company of U.S. cryptocurrency exchange Kraken, has been preparing for an initial public offering that would give public-market investors direct exposure to its trading business. The listing is also viewed as a test of investor appetite for crypto companies seeking access to U.S. equity markets. Payward had previously submitted a confidential filing, allowing it to begin the process without immediately disclosing detailed financial information.

Payward has now postponed the U.S. IPO until the second quarter of 2027 at the earliest, citing difficult market conditions as it slows its listing plans. The delay leaves the timetable open beyond that period and pushes a potential debut further into the future. The company has not disclosed a targeted fundraising amount, expected valuation or specific listing date, making market conditions a key factor in any renewed effort.

Payward, the parent of crypto exchange Kraken, is building beyond trading and custody into deposits, payments, lending and asset management. Its U.S. unit, Kraken Financial, already holds a Wyoming special purpose depository institution charter and received a limited-purpose Federal Reserve master account on March 4, 2026. A full banking license abroad would broaden the group’s ability to take deposits and extend credit while putting it in more direct competition with conventional banks.

Payward is now evaluating jurisdictions outside the United States where it could seek a full banking license, though it has not selected a location or disclosed a timetable. Its longer-term ambitions could extend to mortgages alongside other lending and investment products. On August 14, Payward reported second-quarter adjusted revenue of $508 million, up 17% from a year earlier, with $40 billion of assets on platform and 6.6 million funded accounts, providing a sizable base for the proposed expansion.

Payward’s Kraken is one of the world’s major cryptocurrency exchanges and has been expanding into payments, custody and other financial services. Its second-quarter 2025 results underscore the importance of that diversification: revenue continued to rise even as crypto trading activity weakened, suggesting the company is becoming less dependent on transaction volumes for growth.

Payward reported $508 million in adjusted revenue for the second quarter of 2025, up 17% from a year earlier. Trading volume fell 13% to $310 billion, but the number of funded accounts climbed 42% to 6.6 million. The figures indicate that customer growth and a broader mix of services helped offset softer trading activity during the period.

Payward is the parent company of cryptocurrency exchange Kraken. Hong Kong-based Reap Technologies provides infrastructure for stablecoin-powered corporate cross-border payments, card issuance and settlement. The acquisition connects Payward Services with traditional payment networks, digital assets and real-time on-chain settlement. It is also Payward’s first acquisition of an infrastructure provider in Asia, advancing its expansion from trading services into global corporate payments.

Payward announced the transaction on May 7, 2026, and completed the acquisition on July 1. The consideration is worth up to $600 million and will be paid in cash and Payward shares, with the stock valued based on a $20 billion equity valuation. Reap will retain its brand, management team and independent operating model. Its card-issuing and cross-border payment capabilities will be integrated into Payward Services to support expansion across Asia-Pacific, the Americas and Europe.

Payward, the parent company of cryptocurrency exchange Kraken, has long relied heavily on spot trading volumes and crypto price volatility for its core revenue. As the market cooled in early 2026, the company expanded into futures, tokenized assets and payments through acquisitions including NinjaTrader and Breakout, seeking to reduce its exposure to market cycles.

Payward reported adjusted first-quarter revenue of $507 million on May 18, 2026, up 3% year on year. Adjusted EBITDA was $18 million, while platform trading volume reached $357 billion. Bitcoin fell 22% and industry-wide spot trading volume dropped 38% during the period, but the average daily number of revenue-generating futures trades rose 51% year on year, offsetting weakness in the spot business.

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.