Payward, the parent company of crypto exchange Kraken, reported a 17% increase in revenue for the second quarter even as trading volume declined. The company also said funded accounts jumped 42% during the period, a sign that customer growth is outpacing market activity.
Revenue up, volume down
The revenue bump came despite a drop in trading volume, which typically drives most of an exchange's income. Payward didn't break out exact dollar figures, but the divergence between the two metrics points to a shift in how the company makes money.
A growing share of Payward's revenue now comes from non-transaction-based activities. That includes things like staking, custody, and other services that don't depend on how often users trade. The company didn't specify which services contributed most.
Account growth accelerates
Funded accounts — those with a balance and ready to trade — rose 42% in Q2. That's a faster clip than the revenue growth, suggesting new customers are joining but not necessarily trading heavily.
The combination of more accounts and less trading volume could mean users are holding assets rather than actively buying and selling. It could also reflect broader market conditions, though Payward didn't comment on the reasons behind the trend.
What the numbers don't say
Payward's report doesn't include net profit or loss figures, and the company didn't provide guidance for the coming quarters. The 17% revenue increase is the headline, but the underlying mix of revenue sources is the more telling detail for anyone watching how crypto exchanges evolve.
Kraken has been expanding beyond its core spot trading business in recent years, and the Q2 numbers suggest that strategy is starting to show up in the financials. Whether that continues depends on how the non-trading revenue streams perform as market conditions change.
The company's next quarterly report will show whether the shift toward non-transaction revenue is a lasting trend or a one-quarter blip.
