Kraken Parent Reports $2.2B Revenue Ahead of 2026 IPO

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.

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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.

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