Payward (Kraken) posts $2.2B 2025 revenue as asset services overtake trading, futures DARTs surge
Payward, the parent company of Kraken, reported adjusted fiscal 2025 revenue of $2.2 billion, a 33% year‑on‑year increase driven by expansion into traditional assets and strategic acquisitions including NinjaTrader and Breakout. Transaction volume rose 34% to $2.0 trillion. Adjusted EBITDA improved to $531 million (26% margin). Asset‑based operations — custody, yield products, payments and financing — now represent roughly 53% of revenue, surpassing trading (47%) and providing greater revenue stability versus volatile spot volumes. Funded customer accounts jumped 50% to 5.7 million and platform assets/AUM increased about 11–12% to roughly $48 billion. Futures activity saw the largest gains after the NinjaTrader integration and the launch of US‑regulated crypto futures: futures daily average revenue trades (DARTs) rose 119%, boosting derivatives revenue and liquidity. Q4 produced $625 million in adjusted revenue and $84 million in adjusted EBITDA despite softer industry conditions; the platform remained operationally resilient during a 1.5% one‑day crypto market drop in October. Payward also secured EU MiCA and UK EMI licenses and filed a confidential U.S. IPO prospectus in November, with plans for a separate Nasdaq listing for another group company. Key takeaways for traders: a more diversified revenue mix reduces Kraken’s sensitivity to spot volatility; higher transaction volumes and surging DARTs point to deeper liquidity and greater derivatives activity, which can increase intraday volatility and trading opportunities; regulatory approvals and IPO plans raise institutional credibility but could shift corporate focus toward compliance and traditional‑asset product expansion. (Primary keywords: Payward, Kraken, revenue growth, transaction volume, DARTs, asset‑based services, acquisitions, IPO)
Bullish
The report signals stronger platform fundamentals that are likely to support positive price pressure for Kraken‑listed assets and the exchange’s derivatives products. Key bullish drivers: 1) revenue diversification toward asset‑based services reduces dependence on volatile spot volumes and suggests steadier fee income; 2) a 34% rise in transaction volume and 119% jump in futures DARTs imply deeper liquidity and higher derivatives activity, which typically raises trading volumes and short‑term volatility — an environment traders can exploit; 3) large increases in funded accounts and AUM point to growing user base and capital on platform, supporting sustained order flow; 4) regulatory approvals (EU MiCA, UK EMI) and IPO preparations increase institutional credibility and may attract capital inflows. Risks that temper the outlook include execution risk from integrations and potential shifts in corporate priorities toward compliance and traditional assets, which could slow crypto‑native product innovation. Overall, net impact on Kraken‑listed crypto is positive: likely stronger liquidity and trading demand in both short and medium term, with long‑term upside if the company maintains product focus while scaling compliance.