Reports indicate that Kraken IPO has been postponed to the second quarter of 2027.

Payward, the parent company of Kraken, has deferred its anticipated initial public offering (IPO) until potentially the second quarter of 2027 due to disruptions in market conditions affecting its earlier listing plans.

Kraken’s IPO timeline extended to 2027

Reports on Wednesday indicated, referencing two sources familiar with the situation, that Payward has rescheduled its offering to the second quarter of 2027 at the earliest.

This updated timeline prolongs an IPO process that has already experienced multiple delays. Payward initially aimed for a public debut following a resurgence of cryptocurrency companies in the U.S. equity markets in 2025. However, declining digital asset prices and reduced trading activity hindered the feasibility of maintaining that timeline.

Payward submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission confidentially in November 2025. This confidential submission allows companies to commence the SEC review process without the immediate disclosure of financial statements and other essential information.

During an industry conference in April, Kraken co-CEO Arjun Sethi confirmed the confidential filing, stating that the primary motivation for pursuing a listing was not merely access to public capital, but rather regulatory trust and the company’s long-term strategy.

In March, Payward paused its multi-billion-dollar offering due to challenging market conditions, which decreased the appetite for new crypto stocks. Reuters could not independently verify this report, and a spokesperson for Kraken declined to comment on the listing plans.

An IPO in the second quarter of 2027 is contingent on SEC review, market conditions, and Payward’s eventual decision to proceed. As the draft filing remains confidential, the company has yet to publicly announce a proposed share price, ticker symbol, exchange, or the number of shares being offered.

Payward begins the process with a $20 billion valuation

Before submitting the draft S-1, Payward finalized an $800 million financing arrangement across two tranches, valuing the company at $20 billion and providing additional private capital ahead of the intended listing.

As reported in November by crypto.news, Citadel Securities made a $200 million strategic investment. This funding facilitated Payward’s initiatives in regulated derivatives, tokenized financial products, and expanding into international markets.

Expectations for public listings rose following the successful IPOs of Circle Internet Group and Bullish in 2025. Numerous other digital asset companies also began preparation for offerings, raising hopes of a wave of new U.S. listings in 2026.

Subsequent declines in cryptocurrency prices, diminished trading volumes, and poor performances from recently listed companies dampened investor interest. Other firms like Grayscale, Consensys, and Ledger also delayed their listing plans, awaiting more favorable market conditions.

Ledger halted its preparations for a U.S. listing that could have valued the hardware wallet company at approximately $4 billion. Although they hired Goldman Sachs, Jefferies, and Barclays as advisers, they had not filed a draft S-1, according to a report from May.

BitGo, mentioned in that report as the sole crypto-native company listing in 2026 at the time, was trading 36% below its IPO price from January. This decline further informed private crypto companies assessing interest from public-market investors.

Payward’s revenue increases while trading activity declines

Despite the IPO being on hold, Payward has been actively expanding its operations. The company’s second-quarter results reported an adjusted revenue of $508 million, an increase of 17% from the same quarter in 2025.

The number of funded accounts rose by 42% year-over-year, reaching 6.6 million, while total assets on the platform hit $40 billion. Asset-based and other sources contributed to 60% of the total adjusted revenue, according to Payward’s financial disclosures.

In contrast, trading metrics painted a less favorable picture. Total transaction volume on the platform saw a 13% year-over-year decrease, totaling $310 billion, as crypto spot trading slowed. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased to $23 million.

Results from the first quarter had already indicated that new business avenues were decreasing Payward’s reliance on spot crypto trading. In May, the company noted $507 million in adjusted revenue, reflecting a 3% annual growth, despite a 22% drop in Bitcoin prices during the quarter and a 38% decrease in industry spot volume.

The first quarter also saw a 51% increase in daily average revenue trades of futures, driven partially by partnerships with NinjaTrader, Breakout, and Bitnomial. Funded accounts numbered 6.1 million at the end of that quarter, compared to 6.6 million three months later.

In the first quarter, adjusted EBITDA was reported at $18 million, attributed to expenditures on acquisitions, product development, and enhancing regulatory infrastructure. In May, the company also downsized its workforce by around 150 employees, approximately 5% of its total staff, as part of a cost-cutting strategy.

Kraken advances its regulated U.S. derivatives business

While keeping its shares private, Payward has strategically used acquisitions and new product launches to expand into derivatives, tokenized stocks, and payment services.

The company acquired NinjaTrader, a U.S. retail futures platform, for $1.5 billion in 2025. Additionally, it purchased Bitnomial, a CFTC-regulated derivatives exchange, in a $550 million deal and added Breakout, a trading platform for qualified users.

This acquisition of Bitnomial allows Payward to offer regulated derivatives to eligible American customers. In August, Hyperliquid Labs and Payward entered advanced discussions on introducing selected Hyperliquid-linked perpetual futures to the U.S. market through the platform, according to a recent report.

Any products launched via Bitnomial would operate under regulations set by the Commodity Futures Trading Commission. The Bitnomial Exchange is recognized as a designated contract market, while NinjaTrader Clearing functions as a registered futures commission merchant under the Kraken Derivatives US banner.

In terms of tokenized equities, Payward acquired Backed Finance, the entity behind Kraken’s xStocks offerings. This acquisition provided the company with greater control over the processes related to the issuance and trading infrastructure for offering blockchain-based representations of stocks and exchange-traded funds.

Furthermore, in May, Payward announced plans to acquire Hong Kong-based payment firm Reap Technologies for $600 million in cash and stock. This transaction, which maintains Payward’s valuation at the previously established $20 billion from its funding round, expanded the company’s offerings in stablecoin-based cross-border and commercial payment services.