Payward, the parent company of crypto exchange Kraken, is looking to raise new capital at a $20 billion valuation — a move that sources say is meant to pave the way for a possible initial public offering. The fundraising effort comes as the firm also pursues acquisitions in the derivatives and stablecoin sectors, signaling an aggressive expansion strategy.
Why the valuation jump matters
The $20 billion target would mark a significant increase from Kraken's last known valuation. In early 2023, during a down market, the company was valued at roughly $10 billion in a secondary share sale. A successful round at the higher figure would not only bolster the company’s war chest but also set a benchmark ahead of any IPO. It's a bet that the crypto market's recovery — and Kraken's own growth — can sustain the premium.
Payward hasn't confirmed the valuation figure publicly, but people familiar with the discussions say the company has been sounding out investors in recent weeks. The timing is notable: several crypto firms have regained momentum as Bitcoin and other assets climbed back from the 2022 lows. Kraken itself has been expanding its product lineup, including staking services and an NFT marketplace.
Derivatives and stablecoins on the shopping list
Alongside the fundraising, Payward is actively hunting for acquisitions. According to the same sources, the company is targeting businesses in the derivatives and stablecoin niches. That makes strategic sense. Derivatives trading — futures, options, perpetual swaps — is a high-volume, high-margin business where Kraken has historically lagged behind rivals like Binance and Bybit. Buying an established platform could close that gap quickly.
Stablecoins are another priority. Kraken already lists major stablecoins like USDC and USDT, but owning a stablecoin issuer would give the company more control over liquidity and could open up new revenue streams through reserve management fees. The market for stablecoins has grown to more than $130 billion in circulation, and regulators are beginning to craft rules that could favor well-capitalized issuers.
The IPO calculus
An IPO has been on Kraken's radar for years. Founder and CEO Jesse Powell has previously said going public is a “long-term goal.” The new fundraising round appears designed to give Payward a clean valuation anchor when it eventually files with the SEC. A higher valuation also means less dilution for existing shareholders when shares are sold to the public.
But the path is not straightforward. The SEC has sued Kraken over its staking program and alleged that some tokens listed on the exchange are unregistered securities. Those legal clouds could delay or complicate an IPO. Still, the company appears to be laying the groundwork: a strong balance sheet, a clear acquisition strategy, and a valuation that signals confidence to underwriters.
Whether Payward will target a 2025 IPO or push further out depends on market conditions and regulatory clarity. One thing is certain: the $20 billion round is a message to the market that Kraken is serious about playing offense.
