Kraken’s Parent Payward Expands Beyond Crypto Trading as Revenue Falls 12%

Kraken’s parent Payward is increasingly relying on businesses outside crypto trading to support its financial performance as weaker market activity weighs on transaction fees.

The company reported $487 million in total platform margin for the third quarter of 2026, representing a 12% decline from the same period last year. However, its expanding financial services operations helped offset some of the pressure, with revenue connected to client assets and access to products, data, and services accounting for a larger share of its business.

Payward also reported signs of improvement compared with the previous quarter, as total platform margin increased 12% and adjusted earnings recovered alongside a pickup in trading activity.

Payward’s Revenue Declines as Crypto Trading Activity Weakens

The third-quarter results reflect the challenges facing cryptocurrency exchanges as lower trading activity puts pressure on businesses that depend heavily on transaction fees.

Payward’s total platform margin reached $487 million, down 12% year over year. The company uses this metric instead of adjusted revenue, deducting trading costs and staking rewards paid to customers.

The decline comes amid similar difficulties across the exchange industry. Coinbase reported a 35% year-over-year drop in third-quarter revenue, while Gemini Space Station recorded a 19% decline in revenue alongside a 73% fall in trading volumes.

These figures highlight why major crypto platforms are increasingly looking for ways to diversify their income rather than depend almost entirely on market activity and trading fees.

Non-Trading Businesses Account for a Growing Share of Revenue

Payward’s expansion into financial services appears to be helping soften the impact of weaker cryptocurrency trading.

Income linked to client assets and access to products, data, and services accounted for 52% of the company’s total platform margin in the third quarter, compared with 46% during the same period last year. The company has been developing several business lines beyond its core exchange operations, including banking, asset management, and Payward Services, which provides financial infrastructure to other businesses.