Kraken parent Payward pauses IPO plan after crypto market slowdown, lower trading volumes, and valuation pressure following Bitcoin price volatility.
Payward Inc., the parent company of crypto exchange Kraken, has paused its planned IPO. The company had filed confidential documents with the U.S SEC in November 2025. However, the listing process came to a halt when the condition of the crypto market was weaker. It is the company’s plan to restart only when the market is again stable.
According to CoinDesk, the decision came after high volatility in prices of digital assets. Bitcoin had earlier reached a record high, but trading activity slowed later. Reducing trading volumes decreased the interest of investors in new listings. Because of this, Payward decided to wait before going into the public markets.
Crypto Market Slowdown Affects IPO Plans
Reports said Payward wanted to see a valuation of close to $20 billion during the IPO. The company had raised roughly $800 million in one of its funding rounds in 2025. That valuation was dependent on good market conditions and high levels of trading activities. When the market cooled the expected value became more difficult to maintain.
Kraken parent company Payward has paused its IPO plans. Payward confidentially filed its IPO application with the U.S. SEC last November, but has recently suspended the listing process due to weakened crypto market conditions following Bitcoin's record high, which has put… pic.twitter.com/u9P2kwoJG3
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Last year, many crypto companies had attempted to go public. At least 11 firms raised about $14.6 billion, including Circle, Bullish and Gemini. Those listings occurred when prices were rising and there was strong interest on the part of investors. The situation in 2026 is very different.
So far in 2026, the only crypto custodian that has undergone a public listing is crypto custodian BitGo. Its shares later fell around 45 percent following the trading commencement. This decrease reflected the risk of going public in poor market conditions. Because of this, other crypto firms are moving more carefully.
Payward has not struck the IPO plan completely. The company said that it will consider the listing again at a later date. A spokesman repeated the earlier statement in November and gave no new details. This indicates that the company would rather wait for a better time.
Kraken Add Access to Banking Despite Delay
Even during the IPO’s wait time, Kraken is still growing its services. Earlier this month, Kraken Financial’s received a master account from the Federal Reserve Bank of Kansas City. This approval enables the company to connect with the payment system of the central banking of the US directly.
Master account provides access to the Fedwire, a real time payment network. Fedwire transfers trillions of dollars daily between banks and financial companies. This makes Kraken the first crypto-native company to enter into the heart of the payment system, the Federal Reserve.
Direct access to Fed payment rails can help improve speed and security. It also decreases the necessity of third-party banks. Because of this, the approval is considered to be a huge step for the crypto industry. It reflects the fact that digital asset companies are gradually penetrating the traditional financial systems.
Future IPO Plan Depends on Market Stability
The interruption in the IPO demonstrates how much crypto companies are reliant on the market conditions. When prices have increased, investors give their support to new listings. When prices drop, companies usually postpone their plans. Payward is experiencing the same trend as in the rest of the industry.
Experts say trading volume is an important factor for exchanges such as Kraken. The lower the activity, the lower the revenue from fees. This makes it more difficult to sell investors on high valuations. Waiting until the conditions are better may help the company to get better support later.
Payward is however still interested in becoming a public company in the future. The firm is observing the market and then waiting to make the next move. If trading activity is on the upswing again, the IPO plan could get underway again. Until then, the company will work to grow and to develop new financial services.