Kraken exchange's parent company, Payward, is deliberately delaying its public market debut, shifting focus to building a bridge between traditional finance and blockchain. Instead of a hasty IPO, now expected no earlier than the second quarter of 2027, the company is actively developing tokenization of shares for the world's largest exchanges.
Tokenized Shares: A New Growth Vector
Payward filed a confidential IPO application back in November 2025, but by March 2026 it had paused the process. This is a strategic decision, not a forced measure. The company announced the tokenization of the 100 largest companies on the London Stock Exchange. Their shares will be issued as xStocks tokens with 1:1 backing. The program is available to investors from more than 110 countries, although access for UK and US residents remains closed.
The London exchange plans to launch 24-hour trading of these tokens on the LSE 24 platform as soon as regulators allow. Since June 2025, xStocks volume has reached $40 billion, with the number of holders exceeding 200,000. This is an impressive figure confirming real demand for hybrid financial instruments.
In March, Nasdaq also signed a similar agreement. Together with Payward, an interface is being developed to move tokenized shares between regulated venues and public blockchains. The launch of this system is scheduled for the first half of 2027.
Company Valuation Slips, but Appetites Grow
In November 2025, Payward raised $800 million at a $20 billion valuation—the round was led by Jane Street and Citadel Securities. However, by April 2026, Deutsche Börse bought about 1.5% of the company for $200 million, implying a valuation of roughly $13.3 billion. Wall Street infrastructure is buying assets, but the market has cut the valuation by nearly a third over these months.
Investor caution is understandable. In the second quarter, adjusted revenue grew 17% to $508 million, but EBITDA plunged 71% year-over-year to $23 million. Trading volume on the platform fell 18% to $310 billion. The numbers show that revenue growth is achieved at the expense of margins.
Nevertheless, even in a stalled market, Payward continues to acquire assets. In May, the company closed the deal for the derivatives venue Bitnomial, gaining a full set of regulated derivatives in the US. This stack is planned to be leased out.
My View as an Analyst
Payward's decision to delay the IPO looks pragmatic. The company is building infrastructure that could become the standard for share tokenization, but the monetization question remains open. Whether the fee for this service will fall on investors or be built into transaction commissions is still unclear. However, if the project with LSE and Nasdaq takes off, the $13 billion valuation could seem laughable. The crypto-IPO market is cyclical, and Payward is clearly waiting for a more favorable window to go public with a strong infrastructure advantage.