The world's largest exchange groups are beginning large-scale tokenization of their assets, and at the epicenter of this process is Payward — the parent company of Kraken. Notably, the platform itself is in no hurry to go public: the target has now shifted to the second quarter of 2027. This decision seems paradoxical only at first glance — in reality, we are witnessing a classic story of how infrastructural ambitions outweigh the fleeting desire to raise capital through an IPO.
Tokenization as a new development vector
Payward already filed a confidential IPO application in November 2025, but in March 2026 the process was paused. Now the company is betting on a partnership with the London Stock Exchange (LSE). The focus is on tokenizing the shares of the 100 largest companies in the index — they will be converted into instruments called xStocks, backed by securities at a 1:1 ratio.
The program is already open to investors from more than 110 countries, but access remains closed to residents of the UK and the US. LSE plans to launch trading in these tokens on the round-the-clock platform LSE 24, once the relevant regulatory approvals are obtained. Since June 2025, the volume of xStocks has reached $40 billion, and the number of asset holders has exceeded 200,000. Impressive momentum that demonstrates real demand for hybrid financial instruments.
Nasdaq also concluded a similar agreement in March: together with Payward, an interface is being developed to move tokenized shares between regulated venues and public blockchains. The launch is scheduled for the first half of 2027. In April, Deutsche Börse joined this alliance, acquiring about 1.5% of Payward for $200 million. Thus, Kraken is effectively becoming a key bridge between traditional exchanges and the crypto ecosystem.
Financial realities and valuation
In November 2025, Payward raised $800 million at a valuation of $20 billion — the round was led by Jane Street and Citadel Securities. However, the April deal of this year valued the company at approximately $13.3 billion. Wall Street infrastructure was bought, but over these months the market has slashed the valuation by nearly a third.
The caution is explained by operational results. 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. Even in a stagnant market, Payward continues to acquire assets: in May, a deal was closed for the derivatives venue Bitnomial, giving the company a full suite of regulated derivatives in the US, which are now planned to be leased out.
"The industry is consolidating around us. We built the company precisely to grow as fast as possible in such conditions," said Payward co-CEO Arjun Sethi. The document makes no mention of a listing: the infrastructure is being launched first for "other people's" markets. Whether the cost of it will fall on investors' shoulders or be built into transaction fees remains unclear.
My conclusion: By delaying the IPO, Kraken is deliberately sacrificing short-term liquidity for the position of a dominant infrastructure player at the intersection of TradFi and DeFi. If the tokenization of LSE and Nasdaq takes off, the company's valuation in 2027 could be significantly higher than today's $13 billion. This is a bet that the bridge between Wall Street and the blockchain will become more important than the exchange itself.