While the world's three largest exchange groups are moving their shares to the blockchain via Kraken's infrastructure, Payward itself—the platform's parent company—is in no hurry for a public listing. Based on my analysis of the situation, the market debut is now not expected before the second quarter of 2027. This is a strategic pause, not a forced delay.
Payward filed a confidential IPO application back in November 2025, but the process was suspended in March 2026. According to my information, the company is deliberately shifting its focus from a classic listing to building a tokenization hub for traditional financial markets. This is a far more ambitious goal than simply going public.
Kraken builds infrastructure for Wall Street
The key step is the tokenization of the 100 largest companies on the London Stock Exchange. Their shares are being converted into xStocks: tokens backed by securities at a 1:1 ratio. The program is already open to investors from more than 110 countries, although access for UK and US residents remains closed. Since June 2025, the volume of xStocks has reached $40 billion, and the number of holders has exceeded 200,000. This is impressive momentum, confirming real institutional demand.
In March, Nasdaq signed a similar agreement. 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 acquired about 1.5% of Payward for $200 million—another signal that traditional exchanges see Kraken as a strategic partner rather than a competitor.
Why the IPO delay makes sense
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 valued the company at approximately $13.3 billion. In other words, it bought Wall Street infrastructure, but the valuation has slumped by nearly a third over these months. The cryptocurrency market was far from its peak during this period.
The caution is also 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. Nevertheless, even in a stalled market, Payward continued to acquire assets: in May, it 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.
"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, the listing is not mentioned at all in official documents: first, they launch infrastructure for "other people's" markets. Whether the cost will remain on investors' shoulders or be built into transaction fees remains unclear.
My conclusion: Kraken is deliberately sacrificing a short-term public listing for the role of a key bridge between TradFi and DeFi. If the tokenization of LSE and Nasdaq shares becomes widespread, the company's valuation in 2027 could turn out to be significantly higher than the current $13 billion. This is a bet on long-term leadership, not on immediate gain.