Bank of New York Mellon (BNY) is in talks with Payward Finance, the parent company of crypto exchange Kraken, over a potential infrastructure partnership. According to two people familiar with the matter, the discussions are ongoing and there is no guarantee an agreement will be reached.
What Happened
BNY is in talks with Payward, the Wyoming-based parent company of crypto exchange Kraken, over a broad partnership spanning digital assets and financial-market infrastructure. The potential agreement could cover areas including crypto products, custody, wealth management, trading, payments and infrastructure, the people said.
These offerings are provided through Payward Services, the company’s business-to-business platform for banks, exchanges and asset managers. Discussions are ongoing, and there is no guarantee an agreement will be reached. Both Payward and BNY declined to comment.
Key Facts from the Source
- Payward is the parent company of Kraken, one of the largest U.S.-based cryptocurrency exchanges by volume and user base.
- The proposed partnership could leverage Payward Services, which offers a suite of infrastructure solutions including custody, clearing, settlement, and trading systems to institutional clients.
- Elements of the proposed deal could resemble the infrastructure component of Payward’s recent agreement with Nasdaq, one of the people said, speaking on condition of anonymity because the talks are private.
- Payward has expanded its footprint through strategic acquisitions, including the $550 million purchase of Bitnomial, a U.S. crypto derivatives firm, and a $600 million deal for Reap, a stablecoin-payments company.
- Payward agreed in April to acquire U.S. crypto derivatives firm Bitnomial for as much as $550 million and followed that 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.
- Payward previously delayed its planned initial public offering (IPO) to the second quarter of 2027 at the earliest, after previously shelving the listing due to difficult market conditions.
Background: How Financial Infrastructure Works in Modern Finance
Financial infrastructure refers to the underlying systems, platforms, and services that enable the efficient, secure, and compliant operation of financial markets. These include custody solutions, settlement networks, clearing systems, trading platforms, and regulatory compliance tools.
Traditionally, such infrastructure has been dominated by legacy institutions like banks and clearinghouses. However, the rise of digital assets—such as cryptocurrencies, tokenized securities, and decentralized finance (DeFi) protocols—has created new demands for scalable, interoperable, and secure infrastructure.
Payward has positioned itself as a bridge between traditional finance and the digital asset space. Its Payward Services platform allows financial institutions to access secure, compliant, and interoperable digital asset infrastructure without having to build it from scratch. This includes custody solutions for digital assets, automated trading systems, and settlement engines designed to support real-time on-chain transactions.
For example, Payward’s xStocks ecosystem enables the issuance and trading of tokenized equities—digital representations of traditional shares—on a blockchain-based platform. These tokenized assets maintain the legal and regulatory protections of traditional securities while offering greater liquidity and accessibility.
Similarly, Pay’s collaboration with Nasdaq on tokenized equities aims to create a seamless connection between regulated stock markets and digital asset ecosystems. Nasdaq will supply its market-surveillance technology to Payward’s crypto, equities, futures, and options venues, ensuring that all trading activities meet regulatory standards for transparency and integrity.
The Nasdaq Equity Tokens initiative is expected to launch in the second quarter of 2027. This initiative is designed to allow issuers to tokenize their shares while preserving shareholder rights, regulatory protections, and issuer control—key concerns for institutional investors.
Why This Partnership Matters
The proposed BNY-Payward partnership is significant not only for the companies involved but for the broader financial industry. It reflects a growing trend: traditional financial institutions are increasingly adopting digital asset infrastructure as part of their core operations.
BNY, formerly known as Bank of New York Mellon, has long served as a major provider of institutional banking services, including asset servicing, custody, and wealth management. Its recent initiatives—such as tokenized deposits designed to support near-real-time onchain settlement—demonstrate a strategic pivot toward digital asset infrastructure.
By partnering with Payward, BNY could gain access to a comprehensive digital asset stack that includes custody, trading, and settlement systems. This would allow BNY to offer institutional clients a more integrated suite of services, combining traditional banking with modern digital asset capabilities.
For Payward, the partnership offers a powerful validation of its strategic vision. By aligning with a major institutional bank like BNY, Payward can enhance its credibility, expand its client base, and accelerate its transition from a crypto exchange into a full-fledged financial infrastructure provider.
This move also underscores the growing importance of interoperability between traditional and digital financial systems. As regulatory frameworks evolve and digital assets gain legitimacy, institutions must find ways to integrate them into existing operations without compromising compliance or risk management.
Limitations and Open Questions
Despite the strategic potential, the partnership remains in early stages. Key uncertainties include the specific services being offered, the financial terms of any agreement, the timeline for implementation, and the governance structure of the joint venture.
There is no public information about the scope of services, revenue models, or operational boundaries. Without clarity on these points, it is difficult to assess the full impact or value of the partnership.
Regulatory risk remains a major concern. Digital asset custody and trading are still subject to evolving legal and compliance frameworks. Both BNY and Payward will need to navigate complex regulatory environments, including U.S. Securities and Exchange Commission (SEC) oversight, anti-money laundering (AML) requirements, and data privacy laws.
Additionally, the success of the partnership will depend on the ability of both companies to align their technological platforms, risk management protocols, and compliance standards. Any failure to do so could result in operational inefficiencies or reputational damage.
What to Watch Next
Investors and industry observers should closely monitor several key developments:
- The launch of Nasdaq Equity Tokens in Q2 2027, which may serve as a test case for the interoperability between traditional and digital asset markets.
- Any official statements from BNY or Payward regarding the partnership, which could provide clarity on the scope and structure of the collaboration.
- Disclosures in Payward’s upcoming IPO filing or regulatory submissions, which may include details about its financial infrastructure partnerships and service offerings.
- Market reactions to the news, including changes in investor sentiment toward digital asset infrastructure and institutional adoption.
For more on Payward’s expansion, see the original report from CoinDesk.
For background on Nasdaq’s tokenized equity initiative, see CoinDesk’s coverage.
Payward co-CEO Arjun Sethi has emphasized the company’s strategic shift from being primarily a crypto exchange to a full-fledged financial infrastructure provider. This vision is now being tested through partnerships with major institutions like BNY and Nasdaq.
The evolution of financial infrastructure is not just about technology—it is about trust, compliance, and the ability to deliver secure, transparent, and scalable services to a growing global market. As digital assets become more integrated into mainstream finance, partnerships like this one will likely become more common and more critical.
