Payward, the Wyoming-based parent of crypto exchange Kraken, is accelerating its transformation into a financial infrastructure provider rather than a standalone exchange. By consolidating trading, banking, asset management and institutional services under a single regulatory and technological stack, the company aims to eliminate intermediaries and streamline asset movement across its offerings. This strategy, announced by co-CEO Arjun Sethi, involves internal development, targeted acquisitions and partnerships with established financial institutions to expand beyond its core crypto trading platform.
Over the past two years, Payward has spent billions on acquisitions to expand its reach into futures and derivatives, tokenized securities and U.S. and European banking services. Key moves include a $1.5 billion purchase of NinjaTrader to bolster U.S. futures brokerage capabilities and a $550 million acquisition of Bitnomial for regulated derivatives infrastructure. Sethi also confirmed plans to acquire a European bank, though the target remains undisclosed. Payward’s acquisitions are guided by a quantitative framework focused on filling gaps in financial infrastructure and meeting customer demand.
While Payward builds certain capabilities internally, it also partners with incumbent institutions to leverage their expertise. Nasdaq has invested $100 million in Payward, while the London Stock Exchange is exploring a tokenized equities venue (LSE 24) with Payward, subject to regulatory approval. These collaborations underscore Payward’s belief that blockchain technology complements—not replaces—traditional financial infrastructure, particularly in areas like listing, compliance and market surveillance.
The company’s infrastructure-driven approach extends to Payward Services, a business-to-business division offering APIs for custody, liquidity, compliance, risk management and settlement. At least 25 external companies, including Hyperliquid, are already using Payward’s infrastructure, with more expected to launch products in 2026. This model allows Payward to distribute its services through third-party brands, reducing reliance on direct customer acquisition for Kraken.
Payward remains profitable and has no immediate plans for an IPO, prioritizing regulatory compliance and market evolution over public listing. Sethi argues that established financial structures, such as Nasdaq’s listing and surveillance systems, are too entrenched to be fully replaced by blockchain alone. Instead, Payward seeks to integrate its technology into existing workflows, positioning itself as a bridge between traditional finance and decentralized alternatives.
Despite stalled U.S. crypto legislation, Payward’s strategy hinges on proactive engagement with policymakers, such as its support for the Clarity Act. Sethi emphasizes that rights precede legislation, citing Bitcoin’s 17-year existence without a market-structure bill as evidence that infrastructure can emerge independently of regulatory frameworks.
Payward’s ambitions align with broader trends among crypto exchanges, including Coinbase’s ‘Everything Exchange’ and Binance’s multi-product platforms. However, Payward distinguishes itself by focusing on a regulated, modular infrastructure stack that can support multiple brands and customer segments, rather than a single-branded ecosystem. This approach positions Payward as a potential leader in the next phase of financial innovation, where traditional and decentralized systems coexist.
