Payward Inc., the Wyoming-based parent company of cryptocurrency exchange Kraken, has pushed its planned initial public offering to the second quarter of 2027 at the earliest. The decision extends a process already delayed by challenging market conditions that have reduced demand for new crypto-related listings.

Two people familiar with the matter confirmed the updated timeline. A company representative declined to comment on the listing plans. The delay follows a confidential draft registration statement on Form S-1 submitted to the U.S. Securities and Exchange Commission in November 2025.

Earlier Pause and Funding Round

Payward had already placed its multi-billion-dollar offering on hold in March amid falling digital asset prices, weaker trading volumes and softer valuations across the sector. At the time, the company remained interested in a public listing but waited for improved conditions.

Shortly before the confidential filing, Payward completed an $800 million financing package that valued the company at $20 billion. The round included a $200 million investment from Citadel Securities and support from other institutional participants. The capital helped fund expansion in regulated derivatives, tokenized products and international operations.

Public market expectations for crypto firms rose after successful 2025 debuts by other digital asset companies. Subsequent share price weakness at some newly listed firms and broader industry volume declines cooled investor appetite, prompting several peers to postpone their own plans.

Second-Quarter Financial Results

While the listing remains on hold, Payward reported continued operational growth. Adjusted revenue for the second quarter reached $508 million, a 17 percent increase from the prior year. Funded accounts rose 42 percent to 6.6 million, and assets held on the platform stood at $40 billion.

Asset-based and other revenue accounted for 60 percent of the adjusted total, reducing reliance on pure trading activity. Platform transaction volume, however, fell 13 percent year over year to $310 billion as spot crypto activity slowed. Adjusted earnings before interest, taxes, depreciation and amortization came in at $23 million.

Earlier in the year, first-quarter adjusted revenue totaled $507 million despite a sharp drop in Bitcoin prices and industry spot volumes. The company also reduced its workforce by about 150 employees, roughly 5 percent of staff, as part of cost adjustments.

Expansion Beyond Core Exchange

Payward has used the period of private status to broaden its platform through acquisitions and product development. It completed the purchase of derivatives venue Bitnomial for $550 million and earlier acquired NinjaTrader, a U.S. retail futures platform, for $1.5 billion. Additional deals include Breakout, a proprietary trading platform, and Backed Finance, which supports the company’s xStocks tokenized equity products.

In payments, Payward agreed to acquire Hong Kong-based Reap Technologies for $600 million in cash and stock. It later moved to acquire Magic Labs’ wallet infrastructure business to expand embedded wallet offerings for business clients.

These steps form part of a strategy to shift Kraken from a primarily crypto trading venue into a wider financial services provider covering derivatives, tokenized assets and cross-border payments.

Tokenization Partnerships Advance

Even as its own listing timeline lengthens, Payward has deepened ties with major traditional exchanges. It partnered with the London Stock Exchange to tokenize the 100 largest London-listed companies as xStocks, available to investors in more than 110 countries. The tokens are backed one-for-one by real shares and are expected to trade on the exchange’s round-the-clock venue pending regulatory approvals. Payward has reported $40 billion in xStocks volume since mid-2025 and more than 200,000 holders.

Nasdaq is developing a gateway with Payward to allow tokenized shares to move between regulated venues and public blockchains, with a targeted launch in the first half of 2027. Deutsche Börse acquired a roughly 1.5 percent stake for $200 million in April, implying a valuation near $13.3 billion at the time of that investment.

Discussions have also advanced with Hyperliquid Labs around offering selected perpetual futures to U.S. customers through Payward’s regulated derivatives infrastructure under Commodity Futures Trading Commission oversight.

Any eventual IPO would still depend on the completion of the SEC review process, prevailing market conditions and a final decision by Payward to proceed. Details such as proposed share price, ticker symbol, exchange venue and offering size remain undisclosed while the draft registration stays confidential.