Payward broadens services as crypto trading slowdown cuts third-quarter revenue

Traders Union
All News
Crypto
Payward broadens crypto services

Highlights

Payward's total platform margin drops to $487 million in Q3 due to weaker crypto trading activity, replacing adjusted revenue as a key metric.
Income from client assets and access to products rises to 52% of total revenue, up from 46% a year earlier, as Payward diversifies services.
Payward's platform margin grows 12% quarter-on-quarter amid higher earnings and trading activity, with ongoing talks for partnerships with Wells Fargo and BNY.

Revenue mix shifts beyond trading

As reported by CoinDesk, Payward, the parent of crypto exchange Kraken, says total platform margin falls to $487 million in the third quarter as weaker trading activity reduces fee income. The Wyoming-based company says the metric replaces adjusted revenue and deducts staking rewards paid to clients as well as trading costs.

The results reflect a broader push to reduce reliance on crypto trading fees. Payward says income linked to client assets and access to products, data and services rises to 52% of total revenue, up from 46% a year earlier, as it expands across trading, banking, asset management and Payward Services, which provides financial infrastructure to other companies.

The company also adds artificial intelligence as a fifth business pillar, outlining plans for a personal finance agent and investment funds built on its xStocks tokenized equities platform. Its strategy extends into futures, equities, payments, custody and lending, while its asset-management business includes digital assets, structured yield and tokenized investments.

In November, a Payward-affiliated fund and its clients buy an undisclosed amount of AAVE tokens through secondary-market purchases. The move comes as the company and decentralized lender Aave explore opportunities for further collaboration.

Volume pressure and recovery signs

Payward is not alone in facing lower trading volumes across the sector. Coinbase Global’s third-quarter revenue falls 35% from a year earlier, while Gemini Space Station reports a 19% revenue decline and a 73% drop in volumes, underscoring the pressure on exchanges to build businesses beyond transaction fees.

Even so, Payward points to signs of improvement from the previous quarter. The company says total platform margin gains 12% from the second quarter, while adjusted earnings also rise during the period as trading activity picks up and income from client assets and access to its services increases.

Payward is also pursuing links with large financial institutions as part of that diversification effort. The company has held talks with Wells Fargo about supplying liquidity for crypto trading and separately discusses a financial-infrastructure partnership with BNY covering digital assets, custody, wealth management, trading and payments.

As a reminder, we covered US data centers facing financing, construction, and power constraints amid the AI infrastructure boom.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.