Payword, the parent company of crypto platform Kraken, is raising new capital at a valuation of $20 billion, according to two people with knowledge of the matter.
Kraken declined to comment on the increases.
The latest fundraising round comes as the company is increasing spending on acquisitions.
Most recently, it bought stablecoin-focused payments firm Reap for $600 million and digital asset derivatives platform Bitnomial for $550 million as it continues to grow ahead of a planned IPO. Both transactions valued Payward at $20 billion.
Its biggest deal came in 2025 with the $1.5 billion acquisition of US-based retail futures platform and CFTC-registered futures commission trader NinjaTrader. This acquisition gives Kraken a dominant position in the US derivatives market, while expanding its reach to a broader base of active futures traders.
Payward said it confidentially submitted a draft S-1 registration statement to the U.S. Securities and Exchange Commission on Nov. 19, a first step toward a potential public listing.
CoinDesk reported in March that the company had put its IPO plans on hold amid adverse market conditions. Sources said the company is interested in going public, although this is likely only if market conditions improve.
Last week at Consensus Miami, Payword and Kraken co-CEO Arjun Sethi said the exchange is “80% ready” to go public.
Kraken is a US-based cryptocurrency exchange that lets users buy, sell, and trade digital assets, including Bitcoin and Ether, using fiat currencies or crypto. The company has expanded beyond spot trading into products like derivatives, staking, and custody, transforming itself into a comprehensive full-service crypto platform.
In recent years, the Wyoming-based firm has pursued a more focused but increasingly strategic acquisition strategy aimed at expanding beyond core crypto trading into derivatives and broader multi-asset market infrastructure.
deutsche bourse stake
Deutsche Börse (DB1), owner of the Frankfurt Stock Exchange and Zetra, announced in April that it had taken a $200 million stake in Payword.
The stake, acquired through a secondary share sale, represents approximately 1.5% of the company. The transaction valued Payward at $13.3 billion, down from the nearly $20 billion valuation associated with the previous fundraising round. Payward did not receive any income from the transaction.
Last November, Kraken said it had raised $800 million in two tranches to support its effort to bring traditional financial products on-chain. The round included backing from investors such as Jane Street, DRW Venture Capital and Tribe Capital, while Citadel Securities later agreed to a separate strategic investment of $200 million at a valuation of $20 billion.
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