Kraken Is Building Wall Street's Crypto Gateway While Delaying Its Own IPO

Kraken’s parent company, Payward, is focusing on tokenizing major equity markets while postponing its own public listing to at least the second quarter of 2027.

Tokenized Shares Initiative

Payward agreed on September 1 to create “xStocks,” tokens backed one‑for‑one by the 100 largest London‑listed companies. The tokens will be available to investors in more than 110 countries, though UK residents and US persons are excluded. The London Stock Exchange plans to list these tokens on its round‑the‑clock venue LSE 24 once regulatory approval is obtained.

Partnerships with Global Exchanges

In March, Nasdaq signed a similar agreement to build a gateway that will allow tokenized shares to move between regulated venues and public blockchains, with a target launch in the first half of 2027. Deutsche Börse invested $200 million in April for a roughly 1.5 % stake, valuing Payward at about $13.3 billion.

Financial Performance and IPO Delay

Payward reported second‑quarter adjusted revenue of $508 million, a 17 % increase year over year, while adjusted EBITDA fell 71 % to $23 million. Platform trading volume declined 18 % to $310 billion. Despite the slowdown, the company completed the acquisition of derivatives venue Bitnomial in May, adding a U.S. regulated derivatives stack.

Strategic Outlook

Co‑CEO Arjun Sethi noted that the industry is consolidating and that building infrastructure for other markets may drive faster growth than a direct public listing. The company’s quarterly letter did not mention a specific IPO timeline.