Kraken Parent and Franklin Templeton to Develop Onchain Investment Products

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.

Launched in June 2025, xStocks turns U.S.-listed stocks and exchange-traded funds into blockchain tokens backed one-for-one by securities held in regulated custody. The product, which is unavailable to U.S. residents, is designed to let eligible investors move and trade equity exposure across crypto exchanges, wallets and decentralized-finance applications. Expanding beyond U.S. names is significant because it tests whether tokenization can bridge capital markets still divided by national borders, currencies and trading hours.

Payward, the parent of cryptocurrency exchange Kraken, said on July 22, 2026, it had partnered with fintech infrastructure provider GTN to take xStocks into international equities, starting with Hong Kong-listed shares and later targeting the UK, Europe and South Korea. GTN will provide execution, custody and record-keeping across more than 90 markets, with distribution to institutional clients subject to local licensing. xStocks now covers more than 500 tokenized assets, has processed over $35 billion in transaction volume and has nearly 200,000 holders, according to the companies.

Kraken parent Payward is extending the exchange’s services into regulated banking infrastructure. Its Kraken Financial unit obtained a Wyoming SPDI charter in 2020 and, on March 4, 2026, won approval from the Federal Reserve Bank of Kansas City for a limited-purpose, one-year master account that provides direct access to the Federal Reserve’s payment systems. A federal trust charter would add a qualified custody framework at the national level.

The Office of the Comptroller of the Currency received the application on May 8, 2026. If approved, Payward National Trust Company would be established to provide services including fiduciary custody of digital assets. The Independent Community Bankers of America asked the OCC on June 8 to reject the application, citing concerns over compliance, concentration and related-party transaction risks. Payward also plans to spend up to $550 million to acquire Bitnomial and $600 million to acquire Reap.

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.

Kraken has expanded in recent years from a cryptocurrency exchange into a multi-asset platform. Its xStocks, issued by Backed Assets (JE) Limited, are backed 1:1 by underlying US shares or exchange-traded fund assets. The tokens give non-US investors exposure to US stock prices. Trading volume exceeded $25 billion over the past year, reflecting growing demand to bring traditional assets onchain.

Kraken launched its “Crypto + xStocks” bundles on April 30, 2026, initially offering them to non-US retail clients in selected countries. The products use preset allocations and automatic rebalancing. Bundles include Bitcoin paired with SPYx, a token tracking the S&P 500 ETF, as well as technology stocks such as Apple and NVIDIA combined with Bitcoin, Ethereum and Solana. Investors can also make recurring purchases, break up the bundles or sell them.