According to reports from CoinDesk, Kraken's parent company Payward has reportedly postponed its planned initial public offering until at least the second quarter of 2027. The company had initially prepared for a public debut after cryptocurrency companies returned to U.S. equity markets in 2025, but falling digital asset prices and weaker trading activity made maintaining the original schedule increasingly difficult. Payward confidentially submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission in November 2025, allowing the company to begin the SEC review process without immediately publishing financial statements. The company paused the IPO process in March 2026 before resuming preparations for a potential second quarter 2027 listing. Kraken declined to comment on the reported timeline, with the filing remaining subject to market conditions and regulatory approval.
As reported by CoinDesk, Payward demonstrated resilience in its core business despite challenging market conditions. The company's second-quarter adjusted revenue rose 17% to $508 million despite lower transaction volume, while funded accounts increased 42% year-over-year to 6.6 million and assets held on the platform reached $40 billion. However, total platform transaction volume dropped 13% year-over-year to $310 billion as crypto spot activity slowed, with adjusted earnings before interest, taxes, depreciation, and amortization falling to $23 million. The company also reduced its workforce by approximately 150 employees in May, representing about 5% of its staff as part of cost restructuring efforts. Recent financial data shows adjusted EBITDA fell 71% year-over-year to $23 million, highlighting the challenging trading environment.
According to recent reports, Payward is positioning itself as the infrastructure provider for traditional financial institutions entering the crypto space. Three of the world's biggest exchange groups are moving their shares onto blockchains through Kraken, with the London Stock Exchange planning to trade tokenized shares on LSE 24 once regulators approve. On September 1, Payward agreed to tokenize the 100 largest London-listed companies, creating xStocks tokens backed one for one by real shares. The company counts $40 billion in xStocks volume since June 2025 and more than 200,000 holders, with the London Stock Exchange targeting round-the-clock trading once approved. Nasdaq signed a similar deal in March, building a gateway with Payward so tokenized shares can cross between regulated venues and public blockchains, with that launch targeting the first half of 2027.
According to CoinDesk, Payward has actively expanded its regulated derivatives and tokenized financial products business through strategic acquisitions. The company acquired NinjaTrader, a U.S. retail futures platform, for $1.5 billion in 2025, and purchased Bitnomial, a CFTC-regulated derivatives exchange, in a $550 million transaction. Additionally, Payward acquired Backed Finance, the issuer behind Kraken's xStocks products, and agreed to acquire Hong Kong-based payment company Reap Technologies for $600 million in cash and stock. The company also closed on derivatives venue Bitnomial in May, completing a US regulated derivatives stack it can now rent out. These acquisitions support the company's diversification beyond traditional crypto trading into regulated derivatives, tokenized equities, and payment services.
The delay reflects Payward's strategic decision to prioritize infrastructure development over immediate public listing. Deutsche Börse paid $200 million in April for a stake of roughly 1.5%, implying a valuation near $13.3 billion, while Payward had previously raised $800 million at a $20 billion valuation before filing with the SEC. As reported by CoinDesk, Payward had delayed the listing due to market conditions affecting investor appetite, with the company stating that any offering would depend on the SEC's review, market and other conditions. The company's focus on building crypto infrastructure for traditional financial institutions positions it as a key player in the evolving digital asset ecosystem, though the question remains whether public investors will pay for infrastructure rather than trading fees.
