Payward Reports 67% Decline in Adjusted Profit for the Quarter

The parent company of the cryptocurrency exchange Kraken, Payward, reported a decline in adjusted earnings to $60 million in the third quarter of 2026. This figure decreased by 67% compared to the same period last year amid weakening trading activity. This was stated in a letter to shareholders, which Bloomberg News reviewed on November 13.

The company's adjusted EBITDA amounted to $60 million compared to approximately $182 million a year earlier. The total platform margin, which Payward now uses instead of adjusted revenue, decreased by 12% year-over-year to $487 million. The volume of transactions on the platform fell by 30%, amounting to $353 billion.

However, compared to the second quarter, financial indicators improved. Adjusted EBITDA increased by 163%, and the platform margin by 12%. The number of funded accounts, i.e., accounts with a non-zero balance, increased by 37% over the year, reaching 7.1 million.

Decline in trading activity pressures cryptocurrency exchanges

Payward's results reflect a broader weakening of activity in the cryptocurrency market. Bitcoin rose by about 40% from mid-August to early October, after which it turned downward. Recently, the price of the first cryptocurrency fell below $70,000. Investor sentiment was affected by concerns about inflation, rising bond yields, and the consequences of the U.S. midterm elections.

The reduction in trading volumes is particularly noticeable on exchanges where a significant portion of income depends on transaction fees. For instance, Coinbase reported a 35% year-over-year decline in revenue in the third quarter but returned to profitability. Gemini Space Station recorded a 19% drop in revenue while simultaneously reducing losses compared to last year.

Payward is trying to reduce its dependence on traditional cryptocurrency trading through acquisitions and the launch of new financial products.

Payward expands tokenized stocks and banking services

One of the key areas of the company's development has been tokenized stocks. Earlier this week, Payward added more than 200 tokenized securities of companies from the UK and Europe, including issuers from the FTSE 100 and DAX 40 indices.

According to the company, after the expansion, the xStocks ecosystem includes more than 1,500 assets. Assets under management exceeded $1.1 billion, and the total transaction volume reached $45 billion.

Payward is also developing its banking direction. In October, the company agreed to acquire Saldo Finance Oy, the Finnish parent structure of Saldo Bank, which has a license in Lithuania. The deal is expected to close in 2027 after obtaining the necessary regulatory approvals. It could provide Payward access to banking operations in several European markets, including deposit accounts, lending, and payment cards.

Additionally, in October, the company received full regulatory approval from the Dubai Virtual Assets Regulatory Authority (VARA). Kraken plans to provide cryptocurrency trading and other financial services in the UAE, including deposit and withdrawal operations in the local currency.

Kraken considers launching a token and entering the prediction market

In the letter to shareholders, Payward also disclosed plans to eventually enter the prediction market and issue its own token. The company has not yet announced the timing of these initiatives, the parameters of the tokenomics, or details of future products.

Simultaneously, Kraken is preparing to offer U.S. clients perpetual futures on the blockchain. The launch of these instruments will depend on obtaining regulatory approval and will allow the expansion of the derivatives segment beyond traditional cryptocurrency trading.

Another anticipated event is Payward's IPO. According to data published earlier in September, the company may postpone the initial public offering until at least the second quarter of 2027 due to unfavorable market conditions.

In November 2025, Payward confidentially submitted a draft registration statement to the U.S. Securities and Exchange Commission (SEC). Previously, the company raised $800 million at a valuation of $20 billion.

In early 2026, Payward also reduced its staff by approximately 150 employees. The company explained this as an effort to increase operational efficiency through the implementation of artificial intelligence.