According to Bloomberg’s report on Thursday, Payward Inc., the parent entity behind crypto exchange Kraken, has finalized an agreement to purchase stablecoin payments firm Reap Technologies from Hong Kong for a sum of $600 million. The payment structure involves both cash and stock, with Payward issuing shares at a valuation pegged at $20 billion, as stated by Arjun Sethi, co-CEO of Payward and Kraken. This valuation aligns with the one declared during their recent $800 million fundraising in November, just prior to announcing plans for an IPO filing.
Reap Technologies specializes in cross-border payments using stablecoins, catering specifically to international business transactions. With infrastructure tailored for Asian markets where cryptocurrency payment solutions are increasingly sought after, this acquisition enables Payward to extend its influence from crypto trading into the realm of payment services across Asia. Reap’s established stablecoin network facilitates businesses in executing cross-border payments without the need for conventional banking intermediaries. This move is indicative of a broader trend within the industry towards consolidation as exchanges aim to broaden their revenue streams beyond mere trading fees.
As regional demand for digital asset services rises, crypto exchanges have been actively seeking expansion into Asian markets via acquisitions and strategic partnerships. The adoption of stablecoins has seen significant growth in Asia, serving both retail remittances and corporate trade payments.
This acquisition is Payward’s second major transaction announced within the past month, following a $550 million deal to acquire derivatives exchange Bitnomial, which was completed last week. Subsequent to this, Kraken launched CFTC-regulated spot margin trading on Wednesday, utilizing licenses obtained through the Bitnomial purchase.