Kraken parent Payward’s Q3 earnings fall 67% as crypto trading slows

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Kraken parent Payward has reported a 67% annual drop in third-quarter adjusted earnings as weaker cryptocurrency trading activity weighed on its financial performance, despite a recovery from the previous quarter.

Summary

Kraken parent Payward reported $60 million in Q3 adjusted earnings, down 67% from a year earlier, as trading volumes fell 30%.
Funded accounts grew 37% to 7.1 million, while adjusted earnings rose 163% from the previous quarter.
Payward plans to enter prediction markets and launch its own token, although it has not disclosed a timeline.
Kraken is expanding into tokenized stocks and banking services as its long awaited IPO could be delayed until 2027.

According to a shareholder letter reviewed by Bloomberg News on Nov. 13, Payward generated $60 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), compared with roughly $182 million during the same period last year.

The company’s total platform margin, a financial measure it now uses in place of adjusted revenue, declined 12% year over year to $487 million. Trading activity weakened considerably, with total platform transaction volume falling 30% to $353 billion.

Despite the annual declines, Payward reported an improvement from the second quarter, when adjusted EBITDA was considerably lower. Earnings rose 163% quarter over quarter, while total platform margin grew 12%.

Customer growth remained positive throughout the period. Funded accounts, which include customers holding a balance greater than zero, climbed 37% from a year earlier to 7.1 million.

Kraken’s trading business faces pressure from weaker crypto markets

The third-quarter results come as cryptocurrency exchanges continue to deal with lower trading activity amid volatile market conditions.

Bitcoin had rallied approximately 40% between mid-August and early October before reversing course. The cryptocurrency recently fell below $70,000 as concerns over inflation, higher bond yields, and the impact of the US midterm elections weighed on investor sentiment.

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Lower trading volumes have affected exchanges that depend heavily on transaction fees, although the financial impact has varied across companies.

Coinbase reported a 35% annual decline in third-quarter revenue but returned to profitability. Gemini Space Station, meanwhile, recorded a 19% drop in revenue while narrowing its losses compared with the corresponding period last year.

Payward has been working to reduce its dependence on conventional cryptocurrency trading through acquisitions and new financial products.

Payward expands tokenized stocks and banking operations

One of the company’s largest areas of expansion has been tokenized equities, where Kraken has continued adding traditional financial assets to its blockchain-based trading infrastructure.

Earlier this week, Payward introduced more than 200 tokenized stocks from the UK and European markets, including companies listed on the FTSE 100 and Germany’s DAX 40.

The expansion brought its xStocks ecosystem to more than 1,500 assets, with over $1.1 billion in assets under management and cumulative transaction volume exceeding $45 billion, according to the company.

Its banking ambitions have progressed as well. In October, Payward agreed to acquire Saldo Finance Oy, the Finnish parent of Lithuania-licensed Saldo Bank.

The acquisition, expected to close in 2027 pending regulatory approval, would give Payward access to banking operations across several European markets, including deposit accounts, lending services, and payment cards.

In the Middle East, Payward secured full regulatory approval from Dubai’s Virtual Assets Regulatory Authority in October. Kraken plans to introduce cryptocurrency trading and other financial services in the United Arab Emirates, including support for local currency deposits and withdrawals.

Kraken considers its own token and prediction markets

Alongside its existing expansion plans, Payward disclosed in its shareholder letter that it intends to eventually enter prediction markets and launch a proprietary token.

The company did not provide a timeline, tokenomics, or further information about how either initiative would operate.

Kraken is separately preparing to offer onchain perpetual futures to US customers, subject to regulatory approval. The proposed products would expand its derivatives business beyond conventional cryptocurrency trading.

The company’s long-awaited public listing remains another outstanding development.

As previously reported in September, Payward could postpone its initial public offering until at least the second quarter of 2027 after market conditions disrupted its earlier plans.

Payward confidentially submitted a draft registration statement to the US Securities and Exchange Commission in November 2025 and previously raised $800 million at a $20 billion valuation.

The company reduced its workforce by approximately 150 employees earlier this year, citing efficiency improvements from adopting artificial intelligence across its operations.

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