Kraken Parent Company Payward Reports $508 Million in Revenue: Growth Expands Beyond Trading

Kraken’s parent company, Payward, increased its second-quarter revenue despite a decline in crypto trading volumes, expanding its growth into non-trading activities.

Announcing its results for the second quarter ending June 30, Payward generated $508 million in adjusted revenue. While the company’s revenue increased by 17% year-over-year, adjusted EBITDA remained positive at $23 million. This result came during a period when crypto spot trading volumes declined across the industry.

Payward’s total platform trading volume fell 13% year-over-year to $310 billion. While the distribution of transactions on the platform shifted toward stocks and tokenized shares, the company reported increasing its spot market share for the third consecutive quarter.

Payward moves revenue beyond trading

The share of the company’s asset-based and other revenues within total revenue rose from 55% last year to 60%. The number of funded accounts also grew by 42% year-over-year, reaching 6.6 million. Payward stated that it gained momentum in the European Economic Area after receiving MiCA authorization. Total assets on the platform were recorded at $40 billion.

Payward’s growth strategy was also supported by acquisitions. The company completed the acquisition of Bitnomial, a derivatives platform regulated by the U.S. commodities regulator CFTC, on May 1. While the acquisition of stablecoin payment platform Reap closed on July 1, Payward reached an agreement on July 27 to acquire Magic Labs’ wallet infrastructure unit.

These results were announced at a time when the company’s IPO plans remain uncertain. Payward halted the IPO process in March due to market conditions and has not announced a new timeline. The company had publicly confirmed its plans in April.