Payward posts $508M Q2 revenue as spot trading loses ground
SAN FRANCISCO, Aug. 15. A 17% year-over-year gain pushed Payward's adjusted revenue to $508 million in the second quarter, the Kraken parent company reported, as revenue beyond crypto spot trading expanded its share of the mix. Adjusted EBITDA for the quarter ended June 30 came in at $23 million.
Key takeaways
- Payward, Kraken's parent company, reported adjusted revenue of $508 million in Q2, a 17% year-over-year increase, with adjusted EBITDA of $23 million for the quarter ended June 30.
- Total platform transaction volume fell 13% to $310 billion, which Payward attributed to weaker crypto spot trading, while equities, tokenized equities, and traditional futures gained share.
- Asset-based and other revenue rose to 60% of total revenue from 55% a year earlier, and funded accounts climbed 42% to 6.6 million, with $40 billion in assets on the platform.
- Payward made three deals: closing its Bitnomial acquisition on May 1, acquiring Reap on July 1, and agreeing in July to buy Magic Labs' wallet infrastructure business.
- Payward is preparing for a potential public listing after pausing its IPO earlier this year, though no new timetable has been set.
SAN FRANCISCO, Aug. 15. A 17% year-over-year gain pushed Payward's adjusted revenue to $508 million in the second quarter, the Kraken parent company reported, as revenue beyond crypto spot trading expanded its share of the mix. Adjusted EBITDA for the quarter ended June 30 came in at $23 million.
Total platform transaction volume fell 13% to $310 billion. Payward attributed the drop to weaker crypto spot activity across the industry. Equities, tokenized equities, and traditional futures gained share on the platform during the period.
The revenue composition reflected that shift. Asset-based and other revenue rose to 60% of total revenue from 55% a year earlier, the company disclosed. Funded accounts climbed 42% to 6.6 million. Assets on the platform stood at $40 billion. Payward also cited stronger momentum in the European Economic Area after receiving authorization under the MiCA framework.
Co-CEO Arjun Sethi said in the release that the company's strategy has been "to build one platform rather than a collection of products," tying the quarter to a broader convergence between crypto, equities, derivatives, and regulated financial infrastructure. The quarter's figures show a business less dependent on spot trading, with payments, tokenized assets, derivatives, and infrastructure each carrying a larger share.
Three deals shaped the quarter and the weeks following it. Payward closed its purchase of U.S. derivatives venue Bitnomial on May 1, which it said completed its CFTC-regulated derivatives stack. Stablecoin payments firm Reap was acquired July 1. Payward also agreed later in July to buy Magic Labs' wallet infrastructure business for its business-to-business services offering.
Product launches during the quarter included CFTC-regulated spot margin and perpetual futures for U.S. traders, tokenized pre-IPO exposure, crypto-backed credit, and wider distribution for xStocks. The company's DeFi Earn Bitcoin Vault attracted about $400 million in deposits.
Payward has been preparing for a potential public listing after pausing its initial public offering earlier this year. No new timetable has been set.