What to Know

  • BNY is discussing a potential broad financial-infrastructure partnership with Payward, the Wyoming-based parent company of Kraken.
  • The potential arrangement could cover digital assets, crypto products, custody, wealth management, trading, payments and infrastructure.
  • The services under discussion are tied to Payward Services, the company’s business-to-business platform for banks, exchanges and asset managers.
  • Elements of the potential partnership could resemble the infrastructure component of Payward’s recent commercial agreement with Nasdaq.
  • Discussions are ongoing, and there is no guarantee that a final agreement will be reached.
  • Both Payward and BNY declined to comment on the matter.
  • Nasdaq Ventures agreed last month to invest $100 million in Payward at a $21 billion valuation while expanding collaboration on tokenized equities.
  • Nasdaq and Payward expect to launch Nasdaq Equity Tokens in the second quarter of 2027.
  • Payward has expanded through major acquisitions, including deals involving Bitnomial, Reap and NinjaTrader.
  • Payward has pushed its planned initial public offering to the second quarter of 2027 at the earliest.

BNY is in talks with Payward, the parent company of crypto exchange Kraken, over a potential partnership that could connect one of the world’s major custody banking institutions with a fast-expanding digital-asset and market-infrastructure platform. The discussions center on a broad arrangement that could span digital assets, custody, trading, payments, wealth management and other financial-market infrastructure.

The possible agreement is still at the discussion stage, and there is no certainty that the companies will complete a deal. The scope being considered, however, points to the continuing convergence between traditional financial institutions and crypto-native firms that have broadened beyond spot digital-asset trading into custody, tokenization, payments and institutional technology services.

BNY, formerly known as Bank of New York Mellon, has long operated across custody, asset servicing, clearing and wealth-management services for institutional clients. Payward, based in Wyoming, operates Kraken and has increasingly positioned itself as a multi-product financial-services and infrastructure company rather than only a crypto exchange operator.

Potential Scope Includes Custody, Trading and Payments

The potential partnership could cover several major business lines. Areas under discussion include crypto products, custody, wealth management, trading, payments and broader infrastructure. These offerings are connected to Payward Services, the company’s business-to-business platform that provides infrastructure to banks, exchanges and asset managers.

For BNY, a partnership of this kind could align with the bank’s broader work in digital-asset infrastructure and onchain settlement. For Payward, the talks represent another possible step toward embedding its crypto and tokenized-market capabilities into the systems used by established financial institutions.

Institutional adoption of digital assets has increasingly depended on infrastructure that resembles the standards of traditional markets. Custody, settlement, surveillance, clearing, compliance and payments must operate in ways that large financial institutions can understand, audit and integrate. A potential BNY and Payward tie-up would therefore be less about consumer-facing speculation and more about the operating layer that sits behind institutional trading, asset servicing and settlement.

Nasdaq Agreement Provides a Possible Blueprint

Elements of the proposed BNY partnership could resemble the infrastructure component of Payward’s recent commercial agreement with Nasdaq. That arrangement has already become a notable reference point for how Payward is building bridges between regulated market operators and tokenized assets.

Nasdaq Ventures agreed last month to invest $100 million in Payward at a $21 billion valuation while expanding the companies’ collaboration on tokenized equities. Under that agreement, Nasdaq and Payward will continue developing the operational and commercial infrastructure for Nasdaq Equity Tokens. Payward will also adopt Nasdaq’s market-surveillance technology across its crypto, equities, tokenized-equities, futures and options venues.

The companies expect to launch Nasdaq Equity Tokens in the second quarter of 2027. The initiative is designed to connect Nasdaq’s regulated markets with Payward’s xStocks ecosystem while preserving shareholder rights, regulatory protections and issuer control. That framework highlights a central theme in the institutional tokenization market: the push to make blockchain-based assets function within familiar legal and market structures rather than outside them.

BNY’s Digital-Asset Infrastructure Push

BNY has also been developing tokenized deposits intended to support near-real-time onchain settlement between institutional market participants. That work is part of a broader push by the bank into digital-asset infrastructure, where major financial institutions are exploring how blockchain-based rails may improve settlement processes, collateral movement and transaction workflows.

Tokenized deposits are different from many public crypto assets because they are generally designed to represent bank liabilities in a digital form. In institutional settings, this can allow participants to explore settlement models that use distributed-ledger technology while remaining connected to regulated banking structures. The appeal lies in operational efficiency, faster settlement and the possibility of reducing friction across market infrastructure.

Any arrangement with Payward would need to fit BNY’s institutional risk, compliance and custody standards. Large banks typically move carefully in digital assets because infrastructure partnerships must satisfy requirements around security, regulation, client protection and operational resilience. That caution helps explain why discussions of this kind may be broad in scope while still carrying no guarantee of completion.

Payward Expands Beyond Kraken

Payward’s strategy has increasingly moved beyond Kraken’s exchange roots. The company now operates across spot crypto, derivatives, tokenized equities, custody, staking, payments and traditional securities. Through Payward Services, it also offers infrastructure to banks, fintechs, brokerages and payment companies.

This expansion reflects a broader shift among major crypto companies. The market’s largest operators are no longer competing only on trading fees or token listings. They are also attempting to provide the technology, custody systems, compliance tools, payment rails and market-access products that institutions may use to connect with digital assets and tokenized versions of traditional securities.

Payward’s recent deals reinforce that direction. The company agreed in April to acquire U.S. crypto derivatives firm Bitnomial for as much as $550 million. It later followed with a $600 million deal for stablecoin-payments company Reap. Those transactions came after its approximately $1.5 billion acquisition of retail futures platform NinjaTrader in 2025.

Together, those moves show Payward building a wider financial-services platform with exposure to derivatives, payments, futures, custody and tokenized assets. A potential infrastructure partnership with BNY would fit that pattern, although the current discussions remain private and unresolved.

Institutional Crypto Enters a New Phase

The talks between BNY and Payward arrive as institutional digital-asset infrastructure becomes a more important competitive field. Market participants are increasingly focused on how crypto platforms, banks, exchanges and asset managers can interoperate without sacrificing investor protections, regulatory controls or operational reliability.

Tokenized equities, stablecoin payments, custody platforms and onchain settlement systems all depend on trust in infrastructure. For traditional institutions, that trust often comes from recognizable governance, surveillance technology, regulated counterparties and clear control over issuer rights and client assets. For crypto-native firms, the challenge is to deliver faster and more flexible systems while meeting the standards expected by banks and market operators.

Payward’s Nasdaq collaboration shows one route into that market. A potential BNY relationship could add another, particularly around custody, payments, wealth management and institutional servicing. Still, the outcome remains uncertain. Discussions are ongoing, and both Payward and BNY have declined to comment.

IPO Timing Remains Part of the Payward Story

Payward’s broader corporate trajectory is also drawing market attention. The company has pushed its planned initial public offering to the second quarter of 2027 at the earliest, after previously shelving the listing due to difficult market conditions. That timing places the potential public-market debut near the expected launch window for Nasdaq Equity Tokens.

For investors and institutional clients, Payward’s next phase may be shaped by how successfully it integrates acquisitions, builds infrastructure partnerships and expands beyond its exchange business. The company’s valuation in the Nasdaq Ventures investment shows significant institutional interest, but execution will be critical as tokenized markets and digital-asset infrastructure become more competitive.

BNY’s involvement, if it leads to an agreement, would further underscore the growing role of established financial institutions in shaping the next generation of crypto market infrastructure. Rather than replacing traditional finance, many of the latest digital-asset initiatives appear designed to connect with it through custody, settlement, surveillance, payments and tokenized-market systems.

Frequently Asked Questions (FAQs)

What are BNY and Payward discussing?

BNY and Payward are discussing a potential broad financial-infrastructure partnership that could span digital assets, custody, trading, payments, wealth management and related infrastructure services.

Is a deal between BNY and Payward confirmed?

No. Discussions are ongoing, and there is no guarantee that BNY and Payward will reach a final agreement.

What company owns Kraken?

Kraken is operated by Payward, a Wyoming-based company that has expanded into trading, payments, custody, tokenized equities, derivatives and infrastructure services.

What is Payward Services?

Payward Services is the company’s business-to-business platform offering infrastructure to banks, exchanges, asset managers, fintechs, brokerages and payment companies.

How does Nasdaq fit into Payward’s strategy?

Nasdaq Ventures agreed last month to invest $100 million in Payward at a $21 billion valuation while expanding collaboration on tokenized equities and related market infrastructure.

When are Nasdaq Equity Tokens expected to launch?

Nasdaq and Payward expect to launch Nasdaq Equity Tokens in the second quarter of 2027, with the project intended to connect Nasdaq’s regulated markets with Payward’s xStocks ecosystem.

What digital-asset work has BNY been developing?

BNY has been developing tokenized deposits designed to support near-real-time onchain settlement between institutional market participants as part of its broader digital-asset infrastructure push.

What acquisitions has Payward pursued?

Payward agreed in April to acquire Bitnomial for as much as $550 million, followed with a $600 million deal for Reap, and previously completed an approximately $1.5 billion acquisition of NinjaTrader in 2025.

When could Payward pursue an IPO?

Payward has pushed its planned initial public offering to the second quarter of 2027 at the earliest after previously shelving the listing due to difficult market conditions.