Kraken parent Payward gains market share as slower trading weighs on earnings
Payward, parent company of crypto exchange Kraken, nearly doubled its global crypto spot trading market share to 6.5% in September despite a 66% drop in earnings.
The company handled $353 billion in transactions in the third quarter, down 30% from a year earlier. This market-share gain represents Payward capturing a larger portion of global spot trading relative to competitors, rather than an increase in overall trading activity.
Adjusted EBITDA fell to $60 million from $178.6 million reported a year earlier. Total platform margin decreased 12% to $487 million, as Payward introduced a new measure replacing adjusted revenue, which includes a deduction for staking rewards paid to customers.
Strategic Acquisitions Drive Growth
Over the past two years, Payward has expanded beyond its core cryptocurrency exchange through acquisitions in derivatives, proprietary trading, tokenized assets and payments. This strategy aims to diversify revenue beyond transaction fees that fluctuate with market activity.
Notable purchases include futures broker NinjaTrader and proprietary trading firm Breakout in 2025, followed by the US-regulated derivatives platform Bitnomial in May 2026. The company also entered stablecoin payments with its acquisition of Reap in July.
These acquisitions contributed to a broader mix of trading and service-based activity. The number of derivatives contracts rose 84% to 66 million, while margin from subscriptions and other paid services increased 59% to $125 million.
Earnings Recovery and IPO Plans
Results improved from the second quarter, with total transaction volume rising 22% and total platform margin increasing 12% to $487 million. Margin from assets customers hold on Payward's platforms, including staking services, rose 26% to $128 million.
Adjusted EBITDA climbed to $60 million from $23 million, though it remained 66% below year-earlier levels. Asset- and access-based services now account for 52% of total platform margin, up from 46% a year earlier.
That shift could matter for an eventual public listing.
Payward confidentially filed for a US IPO in November 2025 but paused its plans in March 2026 as market conditions weakened. The earliest potential listing window under consideration is now the second quarter of 2027.
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