Wells Fargo is reportedly engaged in discussions with Payward, the parent company of the Kraken cryptocurrency exchange, regarding a potential crypto trading agreement. Under the proposed arrangement, Payward would act as a liquidity provider for digital asset trading.
The discussions were reported by CoinDesk, citing anonymous sources familiar with the matter. The talks are currently ongoing, and neither Wells Fargo nor Payward has confirmed a final agreement, with both companies declining to comment.
Potential Structure of the Agreement
If finalized, Payward could supply market access and order completion tools to Wells Fargo, allowing the banking institution to offer digital asset trading without operating its own exchange. Specific details regarding supported cryptocurrencies, eligible traders, and implementation timelines have not been disclosed.
Payward offers similar institutional services through its Payward Services unit, launched in March. The product enables banks to provide cryptocurrency trading on their proprietary platforms while Payward manages execution, custody, compliance, and settlement across more than 600 crypto assets.
Wells Fargo and Payward Expansion Efforts
The potential partnership builds upon existing connections between the two firms. Wells Fargo served as Nasdaq's exclusive capital markets adviser for a $100 million investment in Payward announced in September, a transaction that reportedly valued Payward at $21 billion.
Wells Fargo's broader digital asset initiatives include offering spot bitcoin exchange-traded funds to qualified wealth clients, investing in compliance firm Elliptic and trading technology provider Talos, and planning blockchain-based deposits.
Payward has also pursued broader financial infrastructure initiatives, including separate discussions with custody bank BNY regarding potential collaborations in crypto products, custody, wealth management, trading, and payments. Additionally, Payward reported $508 million in adjusted revenue for the second quarter, with approximately $40 billion in assets held across 6.6 million funded accounts.
