Payward, the parent company of crypto exchange Kraken, is in talks to become a crypto liquidity provider to Wells Fargo, according to sources familiar with the matter. Under the potential arrangement, Wyoming-based Payward would supply liquidity for trading digital assets. Both companies declined to comment, and talks are ongoing with no guarantee of a final deal.
Crypto exchanges serve as gateways to digital asset liquidity for banks and institutional investors, providing access to trading venues and helping execute orders. Firms like Coinbase Prime aggregate liquidity across multiple markets, while Kraken offers banks technology to integrate crypto trading into their platforms without requiring them to build the infrastructure themselves.
The discussions signal that major banks are increasingly partnering with established crypto companies to support their digital asset operations. Wells Fargo has already expanded its crypto offerings, including providing spot bitcoin exchange-traded funds to eligible wealth clients and backing crypto compliance firm Elliptic and trading technology provider Talos. The bank has also announced plans for blockchain-based deposits and joined a consortium developing a dollar stablecoin.
A more accommodating regulatory environment has contributed to this shift. The GENIUS Act, signed in July 2025, established a federal framework for payment stablecoins, providing clearer rules for a key connection between crypto markets and the banking system.
Wells Fargo strengthened its digital assets capabilities earlier this year by hiring former Citi banker Mark Gracia. The bank also served as Nasdaq's exclusive capital markets adviser on the exchange operator's September investment of $100 million in Payward.
Separately, Payward is in discussions with custody banking giant BNY over a broad financial-infrastructure partnership that could cover crypto products, custody, wealth management, trading, and payments, further expanding the company's ties with traditional financial institutions.
