Kraken Parent Payward Revenue Rises 17% as Growth Broadens

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.

Kraken parent Payward hired Mazars USA to audit its 2022 financial statements, but the firm withdrew in December 2023 when the audit was nearing completion. The dispute raises questions about crypto companies’ access to essential services such as banking and auditing. Kraken alleges the withdrawal was part of the regulatory pressure campaign it calls “Operation Chokepoint 2.0,” but that remains a company allegation.

Payward announced on July 7, 2026, that an arbitrator had ordered Mazars USA to pay $22 million for operational and financial losses caused by the unfinished audit. Payward petitioned the Delaware Court of Chancery the same day to confirm and enforce the award. Kraken said Mazars had found no fraud, concerns about management integrity or material disagreements during the audit.

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.

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.