Payward's strategy, the parent company of the Kraken exchange, has undergone a radical transformation. Instead of a traditional stock exchange listing, which is now not expected before the second quarter of 2027, the company is betting on building an institutional bridge between classical finance and blockchain. This decision looks like a deliberate step rather than a forced measure.
Focus on infrastructure, not listing
A confidential IPO application was filed in November 2025, but the process was already suspended in March 2026. Instead, Payward has concentrated on ambitious partnerships. The key project has become the tokenization of assets from the London Stock Exchange (LSE). Shares of the 100 largest companies are being converted into xStocks tokens with 1:1 backing. The program is already available to investors from more than 110 countries, although access remains closed to residents of the US and the UK.
The volume of xStocks issuance since June 2025 has reached an impressive $40 billion, and the number of holders has exceeded 200,000. The LSE plans to launch trading in these instruments on the round-the-clock platform LSE 24 after receiving regulatory approvals. This is not just an experiment, but a full-fledged attempt to integrate digital assets into the framework of global exchange infrastructure.
Strategic alliances and valuation
In March, a similar agreement was signed with Nasdaq. Together with Payward, an interface is being developed for moving tokenized shares between regulated venues and public blockchains. The launch of this solution is scheduled for the first half of 2027. Additionally, in April, Deutsche Börse acquired approximately 1.5% of Payward's shares for $200 million, confirming the interest of traditional exchange giants in this infrastructure.
Notably, this deal valued Payward at approximately $13.3 billion. This is significantly lower than the November valuation of $20 billion, when the company raised $800 million from Jane Street and Citadel Securities. The nearly one-third drop in valuation over several months is a worrying signal that explains the caution regarding the IPO.
Financial realities and ambitions
Operating metrics are also mixed. Adjusted revenue in the second quarter grew by 17% to $508 million, but EBITDA collapsed by 71% year-on-year, amounting to only $23 million. Trading volume on the platform fell by 18% to $310 billion. Against this backdrop, Payward continues its aggressive expansion: in May, the deal to acquire the derivatives venue Bitnomial was closed, giving the company a full suite of regulated derivatives in the US.
"The industry is consolidating around us. We built this company precisely to grow as fast as possible in such conditions," said Payward co-CEO Arjun Sethi. It is telling that the listing is not even mentioned in the company's official documents. First, the infrastructure for "other people's" markets is launched, and only then, perhaps, the question of its own offering will arise.
My view: Payward is making a very forward-looking bet. Building a bridge between TradFi and DeFi right now is far more profitable than simply being just another crypto exchange. The success of this strategy will depend on the speed of implementation and the readiness of regulators, but the potential here is enormous. The only question is whether investors will have enough patience to wait for such investments to pay off.