Kraken Parent Payward Breaks Trading Reliance as Services and Custody Drive Q3 Margin
Kraken parent Payward reported client assets and enterprise services generated 52% of its Q3 platform margin, surpassing trading commissions for the first time.
Payward, the parent company of cryptocurrency exchange Kraken, is fundamentally restructuring its business model to reduce dependence on trading commissions. In the third quarter of 2026, client assets and paid access services accounted for 52% of the group's core margin, marking the first time these non-trading revenue sources have exceeded trading commissions.
This strategic shift has helped Payward significantly improve its financial performance. The company's adjusted EBITDA nearly tripled to $60 million in Q3, up from $23 million in the second quarter, even as platform trading volumes remained 30% below year-earlier levels.
To better reflect this new business direction, Payward has introduced a new performance metric called Total Platform Margin (TPM). This metric replaces the traditional 'adjusted revenue' line and measures net intake after deducting direct trading costs and staking yields paid to clients.
New Business Model
This recovery was driven by asset-based margin, service and access fees, and transaction margin.
The company is now focused on packaging its custody, settlement, and liquidity infrastructure for third-party clients rather than onboarding retail customers directly. This represents a significant transformation from a retail crypto venue into a multi-asset infrastructure provider.
While trade matching remains central to Kraken's brand, transaction fees no longer form the majority of what the company retains from its operations.
Strategic Acquisitions
During Q3, Payward completed its acquisition of Reap, a company that provides enterprise card issuance and payment infrastructure. This acquisition strengthens Payward's B2B service capabilities and expands its ecosystem beyond traditional crypto trading.
Following the quarter's end, Payward agreed to acquire the parent company of Lithuania-based Saldo Bank. Pending regulatory approvals expected through 2027, this deal will allow Payward to accept European customer deposits directly onto its own regulated balance sheet.
The company has also formed strategic partnerships, including with the London Stock Exchange to bring UK-listed shares onto Payward's tokenized xStocks platform. In September, rival broker WOO X launched its European operations using Payward Services' custody and backend infrastructure.
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