The world's largest exchange groups are moving their shares to the blockchain, and Kraken is becoming the key operator of this process. Tellingly, the platform's parent company itself, Payward, is in no hurry to enter the public market: the new target is the second quarter of 2027.
A strategic pivot toward institutional infrastructure
Payward filed a confidential IPO application back in November 2025, but by March 2026 it had paused the process. Instead of a standard listing, the company has focused on building a bridge between traditional finance and cryptocurrencies. This involves large-scale asset tokenization, which, judging by the momentum, is becoming a higher priority for Kraken than raising capital through an exchange.
The key project is a partnership with the London Stock Exchange (LSE). Payward has announced the tokenization of the 100 largest companies, whose shares are being converted into xStocks — tokens with 1:1 backing. The program is already available to investors in more than 110 countries, although entry remains closed to residents of the UK and the US. The volume of xStocks issuance since June 2025 has reached $40 billion, and the number of holders has exceeded 200,000 — figures that speak for themselves.
The LSE plans to launch trading in these instruments on its 24-hour platform, LSE 24, as soon as regulators allow. This is not just an experiment but systematic work: in March, Nasdaq signed a similar agreement. Together with Payward, the exchange is developing an interface for moving tokenized shares between regulated venues and public blockchains. The launch is scheduled for the first half of 2027.
April brought further confirmation of serious intent: Deutsche Börse acquired approximately 1.5% of Payward for $200 million. Judging by all indications, American traders may also soon gain access to similar instruments — Hyperliquid is exploring the same path.
Why the IPO delay is logical
In November 2025, Payward raised $800 million at a valuation of $20 billion — a round led by Jane Street and Citadel Securities. However, the April deal already valued the company at approximately $13.3 billion. Wall Street infrastructure was acquired, but the valuation was cut by nearly a third over those months.
The caution is also explained by operating results. In the second quarter, adjusted revenue grew 17% to $508 million, yet EBITDA collapsed 71% year over year to $23 million. Trading volume on the platform fell 18% to $310 billion. These are not the numbers with which one should enter the public market.
At the same time, even amid a stalled market, Payward continues to acquire assets. In May, the company closed the deal for the derivatives venue Bitnomial, gaining a full suite of regulated derivatives in the US. This stack is now planned to be leased out — a model that could become a new source of revenue.
"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. This document contains not a word about a listing: infrastructure is being launched first for "other people's" markets. The question remains whether the cost will fall on investors' shoulders or be built into transaction fees.
My view: Kraken is deliberately sacrificing short-term IPO liquidity for a long-term position in tokenization. If the bridge between traditional exchanges and the blockchain works, the company's valuation could grow multifold — but the risk is that the market may not wait for that moment and may turn to competitors.