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Kraken parent Payward explores becoming a 'full bank' outside the US
Payward, the parent company of the Kraken cryptocurrency exchange, said it is exploring the creation of a full‑service bank outside the United States, expanding into banking, lending, asset management, and may consider mortgage products in the future.
Published:
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What happened
Payward, the parent company of the Kraken cryptocurrency exchange, said it is exploring the creation of a full‑service bank outside the United States, expanding into banking, lending, asset management, and may consider mortgage products in the future.
Confirmed
Global impact / market context
By adding banking functions, Payward can earn interest on loans, collect deposits that fund its crypto operations, and offer a one‑stop financial platform, which could increase revenue, improve cash flow stability, and make the business more attractive to investors.
Analyst inference
Crypto firms have struggled to access traditional banking services after banks tightened ties, prompting companies like Payward to seek their own banking licenses abroad. Competitors such as Binance and Coinbase are also pursuing similar moves to secure deposits and regulatory footing.
Analyst inference
What to watch
- Watch for updates on Payward’s application for a foreign banking charter, which would grant it permission to accept deposits and provide regulated loan services. Analyst inference
- Observe whether Payward rolls out mortgage offerings, as home‑loan services could create a new revenue stream and increase its appeal to crypto‑savvy borrowers. Analyst inference
- Track how rivals such as Binance and Coinbase react, since their own banking initiatives could affect market share and influence the broader push for regulated crypto finance. Analyst inference
Affected assets
- DFI — DeFiChain