Kraken Parent Pursues Asia Expansion as Demand Broadens Beyond Crypto
By Jihye LeeSINGAPORE--Kraken parent Payward is pursuing further expansion in Asia-Pacific, its fastest-growing regional market, as customers seek access to a broader range of investments and financial services, its co-chief executives said."Going forward, Asia-Pacific is already our highest growth market," Co-CEO David Ripley said in an interview Tuesday. "Now it's coming off a smaller base."The company has significant expansion plans and is pursuing regulatory licenses in several jurisdictions, he said, without identifying the countries or giving a timetable.Co-CEO Arjun Sethi said demand in Asia extends beyond cryptocurrencies to overseas investments, fixed-income products and services that let customers borrow or spend against their assets.Many customers lack access to investment products available to wealthy individuals and institutions, he said. Payward wants to broaden that access through its own services and partnerships.The expansion follows Payward's acquisition of payments company Reap, completed in July. The deal adds card issuance and international payments capabilities to the group's services for other businesses.Payward has also announced a partnership with Singapore Gulf Bank, a Bahrain-regulated bank, initially allowing selected institutional customers to settle U.S. dollar transactions around the clock.The moves form part of a broader push by cryptocurrency companies into payments and traditional investments, while established banks and exchanges develop digital-asset services.Nasdaq Ventures agreed in September to invest $100 million in Payward. The companies expect to launch Nasdaq Equity Tokens in the second quarter of 2027, under a framework intended to preserve shareholder rights and investor protections.Payward is also working with the London Stock Exchange on digital representations of shares and their connection to regulated markets.Despite its expansion, Sethi said the company isn't rushing to complete an initial public offering. He cited profitability and said a listing would become more compelling as the business's capital needs grow.The executives didn't confirm a listing timetable but reiterated the crypto exchange's November announcement that it confidentially filed for an IPO in the U.S."As the capital needs become larger, then it makes more sense," Sethi said, discussing access to public capital markets.For the second quarter, Payward reported adjusted revenue of $508 million, up 17% from a year earlier, while total platform transaction volume fell 18%.Write to Jihye Lee at [email protected]