Payward, the parent company of crypto exchange Kraken, is seeking fresh funding at a $20 billion valuation as it prepares for a future IPO. Citing people familiar with the matter, CoinDesk reported that Payward is looking for new outside capital. Kraken declined to comment.
The fundraising effort comes as Payward steps up its expansion strategy. The company recently agreed to acquire stablecoin payments firm Reap for $600 million and digital asset derivatives platform Bitnomial for $550 million. According to the report, both transactions were struck with Payward valued at $20 billion.
Acquisitions extend Kraken beyond spot trading
Kraken’s biggest recent deal was its $1.5 billion acquisition of U.S. retail futures platform NinjaTrader last year. NinjaTrader holds registration as a futures commission merchant, or FCM, with the Commodity Futures Trading Commission, giving Kraken a route into the U.S. derivatives market and access to a more traditional futures customer base.
That direction has become clearer over time. Kraken started as a major U.S.-based exchange for spot trading in assets such as Bitcoin and Ether, with support for fiat-to-crypto trading. It has since been expanding into derivatives, staking, and custody through targeted acquisitions.
Confidential S-1 filing already submitted
Payward’s path toward the public markets did not begin with this funding round. The company confidentially submitted a draft S-1 registration statement to the U.S. Securities and Exchange Commission on November 19 last year, taking a formal step toward a listing.
There were reports in March that market volatility had slowed those plans. Still, Payward and Kraken co-CEO Arjun Sethi said last week at the Consensus conference in Miami that the company’s IPO process was about 80% ready.
Secondary market pricing showed a lower valuation
Traditional finance firms have also taken positions in Payward. In April, Deutsche Börse, the parent company of the Frankfurt Stock Exchange, said it had spent $200 million to buy about 1.5% of Payward.
That transaction took place in the secondary market and implied a valuation of roughly $13.3 billion, below the $20 billion level attached to Payward’s recent fundraising and acquisition activity. Because it was a share sale between existing holders, Payward itself did not receive proceeds from the deal.
Last year, the company also completed a two-stage fundraising totaling $800 million, with the capital earmarked for its push into tokenized traditional financial assets. Investors included Jane Street, DRW Venture Capital, and Tribe Capital. Citadel Securities later added a separate $200 million strategic investment at a $20 billion valuation.