Major U.S. Bank Holds Liquidity Discussions With Kraken’s Parent Company

Key Points

• Payward, which owns the Kraken cryptocurrency exchange, is negotiating with Wells Fargo about providing liquidity services for digital asset trading.
• Negotiations remain active, with neither party willing to provide official statements, and no finalized agreement has been reached.
• In parallel discussions, Payward is pursuing a broader financial services collaboration with BNY.
• The bank served as Nasdaq’s adviser during its $100 million stake acquisition in Payward this past September.
• Financial results showed Payward generating $508 million in adjusted revenue during Q2 2026.

A major American financial institution is pursuing discussions with Payward, the entity behind cryptocurrency platform Kraken, regarding a potential arrangement for digital asset trading. The proposed structure would position Payward as a liquidity source for trading activities involving digital currencies.

CoinDesk reported the talks on Oct. 7, according to two sources directly familiar with the negotiations. Both individuals requested anonymity given the confidential nature of ongoing business discussions.

Negotiations continue but may ultimately not result in a finalized agreement. Representatives from both Wells Fargo and Payward have refused to provide statements.

Structure of the Proposed Arrangement

In a liquidity provider capacity, Payward would furnish Wells Fargo with market connectivity and operational capabilities necessary to execute digital currency transactions. This framework would enable the financial institution to facilitate cryptocurrency trading for clients without establishing its own exchange infrastructure.

Specific parameters remain undisclosed. Questions about which digital currencies would be included, eligible trading participants, and operational mechanics have not been addressed publicly.

Payward currently commercializes similar services through its Payward Services division, which debuted in March. The offering allows financial institutions to provide cryptocurrency trading capabilities on proprietary platforms while outsourcing execution, asset custody, regulatory compliance and transaction settlement to Payward.

The institutional product supports trading access to over 600 digital assets. According to Payward, partner institutions typically complete initial transactions within approximately 90 days following agreement execution, although no specific implementation schedule has been disclosed for Wells Fargo.

The Bank’s Expanding Digital Asset Footprint

Wells Fargo currently provides access to spot bitcoin exchange-traded funds for qualifying wealth management clients. The institution has also invested in Elliptic, a compliance technology provider, and Talos, which specializes in trading infrastructure.

The bank has disclosed intentions to develop blockchain-enabled deposit products and participates in a consortium creating a U.S. dollar-pegged stablecoin. In recent months, it recruited Mark Gracia, previously with Citi, to strengthen its digital assets capabilities.

The two organizations share a recent business connection through Nasdaq. Wells Fargo served as the sole capital markets adviser to Nasdaq for its $100 million equity investment in Payward, which was revealed on Sept. 10.

The transaction reportedly established Payward’s valuation at $21 billion. Nasdaq and Payward are collaborating on Nasdaq Equity Tokens, a platform for tokenized securities scheduled to begin operations in Q2 2027.

Payward is simultaneously pursuing discussions with BNY, a custody banking institution. CoinDesk disclosed last week that those conversations potentially encompass digital currency products, custody solutions, wealth services, trading capabilities and payment systems. No formal agreement has been publicized.

These negotiations unfold amid an increasingly accommodating U.S. regulatory environment for cryptocurrencies. The GENIUS Act, which President Donald Trump signed into law in July 2025, established federal oversight frameworks for payment stablecoins.

Payward has diversified beyond the Kraken exchange throughout this year. In May, the company submitted an application to the Office of the Comptroller of the Currency to establish Payward National Trust Company, an entity focused on digital asset custody services.

The firm also completed an acquisition of Bitnomial. That transaction incorporated a U.S. derivatives exchange and clearing operations under Commodity Futures Trading Commission supervision.

During the second quarter, Payward recorded $508 million in adjusted revenue. The platform’s 6.6 million funded accounts collectively held approximately $40 billion in assets.

Currently, neither Wells Fargo nor Payward has publicized a signed agreement, implementation timeline, asset coverage or financial terms.