BNY Mellon in Talks With Kraken Parent Payward on Custody and Payments
BNY Mellon and Payward, the parent company of exchange Kraken, are negotiating a partnership covering digital assets custody, trading, and payments infrastructure. The deal would mark a significant alignment between a major traditional bank and a crypto-native firm.
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The Proposed Partnership Scope
BNY Mellon and Payward are in active discussions over a potential infrastructure partnership spanning digital assets, custody, trading, payments, and other financial-market services, according to two people familiar with the negotiations. Neither firm has disclosed the talks publicly or provided a timeline for completion.
The proposed arrangement would position BNY Mellon—one of the world's largest custodians for traditional assets—alongside Kraken's parent company in areas where institutional demand for crypto services has grown. Payward operates Kraken as its primary exchange brand and has expanded into infrastructure services beyond trading.
Status and Scale Unclear
No financial terms, governance structure, or implementation timeline have been announced. The talks remain preliminary, and either party could walk away without public disclosure. The scope described by sources encompasses at least six functional areas, though the relative weight given to each remains undisclosed.
Why It Matters
For Traders
If completed, the partnership could expand Kraken's institutional trading and settlement options, potentially affecting liquidity and execution pricing on the platform.
For Investors
A BNY Mellon–Payward tie-up signals institutional demand for crypto infrastructure and validates custody-plus-trading as a viable business model for established financial players.
For Builders
Formalized integration between legacy custodians and crypto platforms may set a template for how dApps and protocols interface with traditional banking rails for settlement and on-ramps.
This article is for information only and is not financial advice. Read the full disclaimer.
