Kraken's parent company Payward nearly doubled its share of global crypto spot trading to 6.5% in September, up from 3.3% a year earlier. The gain reflects Payward capturing a larger portion of spot trading relative to competitors rather than an expansion in overall trading activity.
Transaction volume across Payward's platforms fell 30% year-over-year to $353 billion in the third quarter. Adjusted EBITDA declined to $60 million from $178.6 million in the prior year, while total platform margin decreased 12% to $487 million.
Diversification Beyond Trading
Payward has pursued acquisitions over the past two years to reduce reliance on transaction fees, which fluctuate with market volatility. Recent purchases include futures broker NinjaTrader, proprietary trading firm Breakout, US-regulated derivatives platform Bitnomial, and stablecoin payments provider Reap.
These businesses contributed to a shifting revenue mix in the third quarter. Derivatives contracts on which Payward charges per-contract fees rose 84% to 66 million. Margin from subscriptions, trader evaluations and other paid services increased 59% to $125 million.
Recovery From Second Quarter
Third-quarter results showed improvement from the second quarter despite remaining depressed compared with a year earlier. Total transaction volume rose 22% quarter-over-quarter, while total platform margin increased 12% to $487 million from $436 million.
Asset- and access-based services, including staking-related revenue, accounted for 52% of total platform margin, up from 46% a year earlier. Margin earned from these sources rose 26% to $128 million and contributed roughly half of the quarterly margin increase.
Adjusted EBITDA climbed to $60 million from $23 million in the second quarter, with its margin relative to total platform margin rising to 12% from 5%.
IPO Outlook
Payward confidentially filed for a US IPO in November 2025 but paused its plans in March as market conditions weakened. By September, the earliest potential listing window under consideration was the second quarter of 2027.
