Payward, the parent company of the Kraken exchange, has established a new financial baseline as it transitions from a digital asset exchange into a diversified financial infrastructure provider.
In a report released February 3, 2026, co-CEO Arjun Sethi disclosed that full-year 2025 adjusted revenue reached $2.2 billion, a 33% increase from the $1.5 billion reported in 2024.
This growth reflects a fundamental shift in Payward’s earning power, with “asset-based” services now outperforming traditional trading commissions for the first time. This diversification arrives as Kraken moves toward a public listing, supported by a $20 billion valuation secured in late 2025.
2025 Financial Structure and Volume
The 2025 fiscal year was characterized by aggressive expansion into non-trading sectors, supported by $2 trillion in annual transaction volume. Despite periodic industry volatility, Payward maintained high operating leverage, resulting in a 26% increase in adjusted EBITDA to $531 million.
- Revenue Mix Shift: For the first time, asset-based revenue (custody, yield, and financing) accounted for 53% of total income, while trading-based revenue represented 47%.
- Capital Efficiency: Total platform assets grew to $48.5 billion, a 12% rise, while funded accounts reached 5.7 million, reflecting a 50% year-over-year surge.
- Structural Stability: By prioritizing recurring service revenue over volatile trading fees, the company has reduced its sensitivity to crypto “drawdown” cycles, a key technical requirement for its upcoming public listing.
Strategic Acquisitions and Multi-Asset Expansion
The shift toward a multi-asset ecosystem was accelerated through high-profile acquisitions designed to bring traditional financial (TradFi) products onto programmable rails.
| Strategic Acquisition | Asset Focus | Market Impact |
| NinjaTrader | Futures & Derivatives | $1.5B deal; integrated CME Group derivatives (metals, FX, energy). |
| Breakout | Proprietary Trading | Expanded Kraken’s footprint in institutional execution and risk management. |
| Backed (xStocks) | Tokenized Equities | Enabled 24/7 trading of stocks like Tesla and Nvidia for global users. |
These moves align with Sethi’s vision of a “unified global financial infrastructure,” where the marginal cost of launching new asset classes decreases once the core compliance and settlement layers are established.
2026 IPO Scenarios and Valuation
Payward is currently executing a two-pronged approach to the public markets, having already achieved a $20 billion post-money valuation following a strategic investment from Citadel Securities in late 2025.
On January 28, 2026, the Kraken-backed KRAKacquisition Corp (KRAQU) listed on the Nasdaq, raising $345 million. This blank-check entity provides an alternative path for M&A activity within the digital asset ecosystem.
Payward has confidentially filed its S-1 statement with the SEC. A successful public debut is anticipated for mid-2026, contingent on maintaining the current revenue growth of 30%+.
Bearish invalidation of the $20 billion valuation would stem from regulatory shifts or a failure to sustain the 50% account growth rate. A breakdown in the IPO timeline could occur if platform assets fall below the $40 billion support level.
Conclusion
Payward’s 2025 results confirm that the “exchange-only” era is over. The company’s structure now favors a “throughput” model where revenue is tied to the movement and custody of assets across a growing set of geographies. As it prepares for a 2026 IPO, the primary confirmation for investors will be Payward’s ability to maintain its 53% asset-based revenue share, ensuring that earnings remain predictable even if market volatility compresses trading volumes.
