While global exchange giants are one by one moving their stocks to blockchain via Kraken's infrastructure, the platform's parent company, Payward, is conspicuously in no hurry to go public. According to my data, the initial public offering is now expected no earlier than the second quarter of 2027. This decision is not a sign of weakness, but a clear strategic calculation that is changing the rules of the game at the intersection of traditional finance and the crypto industry.
Tokenization as a new priority
Payward filed a confidential IPO application back in November 2025, but by March 2026 the process was put on hold. Instead of chasing a public market valuation, the company has focused on building infrastructure for institutional giants. This involves tokenizing the shares of the 100 largest companies on the London Stock Exchange (LSE). These securities are converted into xStocks tokens with 1:1 backing, available to investors from more than 110 countries, although entry for US and UK residents remains closed for now.
The issuance volume of xStocks has already reached $40 billion, and the number of holders has exceeded 200,000. The London exchange plans to launch 24-hour trading of these assets on its LSE 24 platform as soon as regulators give the green light. In parallel, in March, Nasdaq signed a similar agreement: together with Payward, an interface is being developed for moving tokenized shares between regulated venues and public blockchains. The launch of this project is scheduled for the first half of 2027.
Valuation dropped, but appetites grew
The financial picture is mixed. In November 2025, Payward raised $800 million at a valuation of $20 billion — the round was led by Jane Street and Citadel Securities. However, by April, a Deutsche Börse deal, which bought about 1.5% of the company for $200 million, valued Payward at approximately $13.3 billion. In other words, the infrastructure for Wall Street was bought, but the valuation was cut by nearly a third over those months.
Operating results explain the caution. In the second quarter, adjusted revenue grew 17% to $508 million, but EBITDA collapsed 71% year-over-year to a modest $23 million. Trading volume on the platform fell 18% to $310 billion. But even in a stalled market, Payward continues to acquire assets: in May, a deal for the derivatives venue Bitnomial was closed, giving the company a full set 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. Notably, his letter to shareholders does not mention the listing at all. First, they launch infrastructure for "other people's" markets, and only then do they think about their own IPO.
My view: It is highly telling that Kraken is deliberately sacrificing short-term IPO liquidity for a long-term role as a "bridge" between TradFi and DeFi. If the projects with LSE and Nasdaq take off, Payward will become an indispensable link, and by 2027 its valuation could not only recover but far exceed November's $20 billion. Investors should closely watch how this infrastructure will be monetized — whether the cost will remain on issuers' shoulders or fall into transaction fees.