Wells Fargo is in talks with Kraken's parent company Payward to secure crypto trading liquidity. The talks are private, and both firms declined to comment, but two sources with direct knowledge say Payward would supply the liquidity needed for the bank's digital‑asset trading desks.
Payward is the Wyoming‑based owner of Kraken, one of the longest‑running exchanges in the space. If the deal closes, the bank would tap an existing market‑making operation instead of building its own infrastructure. That mirrors what other banks have done: Coinbase Prime aggregates liquidity across venues, and Kraken already offers technology that lets banks embed crypto trading into their platforms.
The move fits a broader trend of major U.S. banks reaching for crypto partners. Wells Fargo previously advised Nasdaq on a $100 million investment in Payward, a signal that the bank already sees value in the exchange's capabilities. The new talks suggest the bank wants a more hands‑on role in facilitating client trades, rather than just advising on investments.
Regulation is a big part of why banks feel more comfortable now. A more accommodating regulatory climate during President Donald Trump's administration has helped reduce some of the legal uncertainty that kept banks on the sidelines, making firms like Payward look like viable commercial partners rather than risky outliers.
The industry's "banking squeeze" of the early‑2020s still lingers, but the fact that a bank as large as Wells Fargo is now courting a crypto exchange shows how the environment has shifted.
What would the partnership actually deliver? In practice, Payward would provide depth on the order books that Wells Fargo's traders could draw from. That could tighten spreads for the bank's clients and reduce slippage on large orders. For Payward, the deal would open a steady flow of institutional volume, which could improve its own market‑making profitability. Both sides stand to gain, but the arrangement also ties a traditional bank to the volatility of crypto markets.
There are still open questions. The talks are ongoing and may not result in a deal. It's unclear how much liquidity the bank would need, what fees would be charged, or how the partnership would be structured legally. If regulators decide to tighten stablecoin rules again, the deal could face new hurdles. And the crypto market's price swings could expose the bank to risk it may not be prepared for.
Overall, banks appear to be treating crypto more like a utility than a speculative asset, they want the plumbing, not the hype. Whether that strategy pays off remains to be seen, but the conversation itself marks a notable shift in how traditional finance engages with digital assets.
Sources