Kraken Parent Payward Posts Strong Q2 Growth Amid Crypto Market Decline

Payward, the parent company of Kraken, reported second-quarter adjusted revenue of $508 million, up 17% year over year. This growth came despite a decline in crypto spot volumes across the industry, with total platform transaction volume dropping 13% to $310 billion.

The mix shifted toward equities and tokenized equities, and Payward said it gained spot market share for a third consecutive quarter. Asset-based and other revenue climbed to 60% of total revenue from 55% in the same period last year.

Funded accounts rose 42% to 6.6 million, with Payward citing momentum in the European Economic Area following its MiCA authorization. Assets on platform stood at $40 billion.

Co-CEO Arjun Sethi attributed the results to the company's decision to build a single platform rather than separate products. He noted that three forces are 'rearranging global markets: convergence across asset classes, the onshoring of activity into regulated venues, and the automation of market participation.'