Kraken’s parent Payward is betting billions on becoming financial infrastructure, not just a crypto exchange
In this news:
Key takeaways
- Payward Services is offering banking and crypto infrastructure through a common set of APIs.
- At least 25 companies, including Hyperliquid, are building products using this infrastructure.
- The new strategy creates revenue streams that do not depend entirely on direct Kraken customers.
“Bitcoin has been around for 17 years without a market-structure bill,” he said. “Rights come first and laws come later and legislation comes downstream.”
Opening its infrastructure to other companies
Payward is also turning infrastructure originally built for Kraken into a business of its own. Payward Services offers banks, fintech companies, brokerages and crypto platforms through a common set of APIs. At least 25 companies are building products using the infrastructure and are expected to launch this year, Sethi said. Hyperliquid is among its partners.
The division emerged from infrastructure Payward had already built for itself, including custody, liquidity, compliance, risk management, payments and settlement. It now packages those capabilities for external companies through a single integration. That could give Payward a distribution channel that doesn't depend on directly bringing customers to Kraken, Architect Partners said. Banks, fintechs, brokers and other companies can instead use Payward's infrastructure within products that carry their own brands.
“Payward’s model can work even when the end customer never interacts with Kraken directly,” Architect Partners said. That strategy gives Payward another potential revenue stream beyond customers trading on Kraken while also putting the company in competition with the growing number of crypto firms selling infrastructure to banks and fintechs.
Bringing asset management onchain
The company is making a similar move with investment products.
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