Payward, the parent company of the Kraken exchange, is deliberately freezing its initial public offering process. Instead of rushing to the stock market, the company is building a large-scale infrastructure bridge between traditional finance and blockchain. The target for a potential IPO has now been pushed back to the second quarter of 2027, and this decision looks strategically sound.
A confidential IPO filing was submitted back in November 2025, but by March 2026 the process had already been halted. My analysis shows that this is not a forced pause, but a deliberate choice in favor of developing the institutional segment, which promises far more ambitious prospects than a classic listing.
Kraken is building a tokenization hub
The key step is a partnership with the London Stock Exchange. The focus is on tokenizing shares of the 100 largest companies in the LSE index. Each such instrument, named xStocks, is backed by real securities on a 1:1 basis. The product is already available to investors in 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, with the number of holders exceeding 200,000. The London exchange plans to launch 24/7 trading in these tokens on its LSE 24 platform as soon as regulatory approvals are obtained.
In March, a similar agreement was signed with Nasdaq. Together with Payward, an interface is being developed that will allow tokenized shares to move seamlessly between regulated venues and public blockchains. The launch of this solution is scheduled for the first half of 2027.
Deutsche Börse's involvement is also telling: in April, it acquired approximately 1.5% of Payward's shares for $200 million. This is direct confirmation that the world's largest exchange groups see Kraken as a key technology partner. It is also possible that Hyperliquid is preparing a similar path in the US.
Why the IPO pause makes sense
Financial metrics explain management's caution. In November 2025, Payward raised $800 million at a valuation of $20 billion, while the April deal already valued the company at approximately $13.3 billion. Wall Street infrastructure was acquired, but the valuation slumped by nearly a third within a few months.
Operating results are also mixed. Adjusted revenue grew 17% in the second quarter to $508 million, yet EBITDA collapsed 71% year over year to a modest $23 million. Trading volume on the platform fell 18% to $310 billion.
Against the backdrop of a stalled market, Payward continues its aggressive expansion. In May, the acquisition of the derivatives venue Bitnomial was completed, giving the company a full suite of regulated derivatives products in the US. This stack is now being planned for lease.
"The industry is consolidating around us. We built this company precisely to grow as fast as possible in these conditions," said Payward co-CEO Arjun Sethi.
The listing is not even mentioned in the company's documents. First, they launch infrastructure for "other people's" markets, and only then, likely, will they gauge investor appetite. Whether the cost of tokenization will remain on investors' shoulders or be built into transaction fees remains unclear.
My conclusion: Payward is betting on becoming not just an exchange, but a clearing and issuance hub for tokenized assets worldwide. If this strategy works, by 2027 the company's valuation could not only recover but far surpass the November peaks. Investors should closely monitor the development of partnerships with LSE and Nasdaq — that is the main indicator of the success of the entire endeavor.