Investment Platform Kraken's Parent Payward Sees Earnings Plunge As Crypto Trading Slows In Bear Market

When measured at constant prices, real assets on platform grew substantially, suggesting clients continued to consolidate activity rather than exit the ecosystem.

The company also reported gains in spot market share for a third consecutive quarter.

A notable shift appeared in the revenue mix.

Asset-based and other non-trading revenue accounted for 60 percent of the total, up from 55 percent a year earlier.

Growth in traditional futures, equities, and tokenized equities helped offset softer crypto spot volumes.

Futures daily average revenue trades rose modestly year-over-year, and clients increasingly engaged across multiple asset classes on the same platform.

Payward has pursued a deliberate strategy of diversification beyond pure cryptocurrency spot trading.

Recent acquisitions and product expansions have strengthened offerings in derivatives (including CFTC-regulated products), equities, tokenized assets, payments, and related infrastructure services.

The company has emphasized building a unified multi-asset platform with shared matching, risk, and settlement systems, supported by an extensive portfolio of licenses.

This approach aims to capture capital rotation across markets and generate more stable income from balances and services when pure trading fees soften.

Management described the quarter as a test of that architecture amid broader industry challenges.

In May the firm adjusted its cost base to align with prevailing conditions while continuing selective investments in growth priorities.

The results kept the business adjusted EBITDA-positive even as profitability compressed sharply compared with the stronger prior-year period.

The broader environment remains difficult for crypto-focused platforms that historically relied heavily on transaction fees.

Lower volatility, reduced retail participation, and price declines have constrained volumes industry-wide.

Payward’s experience illustrates both the vulnerability of trading-dependent models and the potential benefits of expanding into adjacent financial products and infrastructure.

As the company continues to develop its multi-asset capabilities and pursue regulatory positioning in key markets such as the European Economic Area under MiCA, its ability to grow user balances and non-trading revenue will remain central to navigating the current cycle.