Payward & BNY Explore Crypto Partnership

Introduction to Payward and BNY Partnership

Payward, the parent company of Kraken, has entered talks with BNY over a potential partnership covering six areas, including crypto custody, trading, and payments. The discussions, which are ongoing, may involve services supplied through Payward Services, the Wyoming-based company’s platform for banks, exchanges, and asset managers.

The proposed arrangement could involve a range of services, including crypto products, custody, wealth management, trading, payments, and financial infrastructure. Payward has completed acquisitions adding regulated U.S. derivatives and stablecoin payment services to its operations, and the company’s operations include spot crypto trading, derivatives, tokenized equities, custody, staking, payments, and traditional securities.

Background on Payward and BNY

BNY, formerly Bank of New York Mellon, is a provider of custody, asset servicing, clearing, and wealth management for institutional clients. The bank’s digital cash program already involves institutional clients and financial-market infrastructure providers. Payward, on the other hand, offers financial companies access to services that also support Kraken and its other businesses through its business-to-business platform.

In September, Nasdaq Ventures agreed to invest $100 million in Payward at a reported $21 billion valuation. The agreement includes tokenized equity infrastructure, and Nasdaq said Payward will adopt its surveillance technology across crypto, equities, tokenized equities, futures, and options venues.

Nasdaq and Payward Agreement

The agreement between Nasdaq and Payward covers distribution, trading, and post-trade services, connecting the tokens with Payward’s xStocks ecosystem while preserving investor protections and issuer rights. The launch of the planned equity tokens is expected in the second quarter of 2027.

BNY’s Tokenized Deposits

BNY described the first step in its deposit-tokenization program: creating blockchain records that mirror participating clients’ existing deposit balances. The system runs on a private, permissioned blockchain, while balances continue to appear in the bank’s traditional records for regulatory and reporting purposes.

• BNY’s tokenized deposits begin with collateral and margin workflows.
• The bank said the digital entries represent clients’ demand deposit claims against BNY.
• The system runs on a private, permissioned blockchain.

Acquisitions and Financial Results

Payward completed its U.S. derivatives acquisition in May, and the company also acquired retail futures platform NinjaTrader for approximately $1.5 billion in 2025. Payward reported $508 million in adjusted revenue, up 17% year over year, and $23 million in adjusted EBITDA in its second-quarter financial results.

The company’s platform transaction volume fell 18% to $310 billion, while asset-based and other revenue represented 60% of total revenue, compared with 55% a year earlier. Payward also agreed to acquire Magic Labs’ wallet business through an asset purchase, with the technology having supported more than 60 million wallets and over $10 billion in stablecoin volume.

Implications for the Crypto Industry

The potential partnership between Payward and BNY could have significant implications for the crypto industry, with the two companies discussing a range of services, including crypto custody, trading, and payments. While the talks are ongoing, and there is no guarantee that the companies will reach an agreement, the proposed arrangement could involve a range of services and mark a significant development in the crypto space.

Expert Perspective

Experts in the crypto industry believe that a partnership between Payward and BNY could lead to increased adoption of crypto assets among institutional investors. The partnership could also lead to the development of new crypto products and services, such as tokenized securities and crypto-based payment systems.

Timeline of Events

The discussions between Payward and BNY began in recent months, with the two companies exploring potential areas of cooperation. The talks are ongoing, and there is no guarantee that the companies will reach an agreement. However, if a partnership is formed, it could mark a significant development in the crypto industry.

Conclusion

In conclusion, the potential partnership between Payward and BNY is a significant development in the crypto industry. The two companies are discussing a range of services, including crypto custody, trading, and payments, and a partnership could lead to increased adoption of crypto assets among institutional investors. While the talks are ongoing, and there is no guarantee that the companies will reach an agreement, the proposed arrangement could involve a range of services and mark a significant development in the crypto space.

Implications for Readers in India

The potential partnership between Payward and BNY could have implications for readers in India, particularly those interested in the crypto industry. A partnership between the two companies could lead to increased adoption of crypto assets among institutional investors, which could have a positive impact on the Indian economy.

What to Watch Next

Readers should watch for further developments in the discussions between Payward and BNY, as well as any potential announcements regarding a partnership. Additionally, readers should keep an eye on the crypto industry as a whole, as it continues to evolve and grow.