Payward reports $508M Q2 revenue as Kraken expands services

Payward, the parent company of the cryptocurrency exchange Kraken, reported a 17% year-over-year increase in second-quarter revenue, reaching $508 million. This growth occurred despite a 13% decline in spot trading volumes, a trend reflecting broader market conditions in the cryptocurrency sector.

The company’s revenue growth was driven by diversification into non-trading services. Asset-based and other income streams, including staking and tokenized stocks, now account for 60% of total revenue. Additionally, the number of funded accounts grew by 42% to 6.6 million, while total assets under custody reached $40 billion.

Payward is pursuing an expansion strategy through several key acquisitions, including the US derivatives platform NinjaTrader to bolster its futures offerings, a stablecoin payment platform, and Capitalise.ai to automate trading strategies. Recent funding rounds have reportedly valued the company between $13 billion and $20 billion, amid speculation regarding a potential initial public offering.