Payward delays IPO to second quarter of 2027 at earliest

Payward Inc., the parent company of crypto exchange Kraken, filed its confidential S-1 registration statement with the SEC in November 2025, then paused its IPO plans in March 2026, citing adverse market conditions and softer trading volumes. Reports now indicate the listing may not occur until 2027, with no revised timeline or updated filing disclosed since the initial pause.

The numbers tell a complicated story

Payward’s second-quarter 2026 results, reported in August, show adjusted revenue of $508 million, up 17% year-over-year. Adjusted EBITDA cratered to $23 million, a 71% decline from the prior year. The company also noted that funded accounts hit a record high.

In May 2026, Payward laid off approximately 150 employees, about 5% of its workforce, framing the reductions as part of cost discipline and efficiency gains driven by AI implementation. Co-CEO Arjun Sethi described Payward as “about 80% ready” for an IPO during that same period, adding that the company would revisit its public listing plans when conditions improve.

From $20 billion to question marks

In November 2025, the company secured $800 million in funding at a $20 billion valuation, including a $200 million investment from Citadel Securities. Subsequent investment activity has implied a significantly lower figure, with some estimates placing the company’s valuation closer to $13.3 billion.

Payward became the first crypto firm to obtain a Federal Reserve master account and has prioritized acquisitions to build out what it describes as a regulated financial infrastructure.

What the delay means for crypto’s IPO pipeline

The 71% decline in Payward’s adjusted EBITDA highlights a structural challenge for crypto exchanges: revenue surges during bull markets when trading volumes spike, then contracts sharply when market enthusiasm fades. Coinbase, the most prominent publicly traded crypto exchange, has experienced that dynamic firsthand since its own direct listing in April 2021.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.