CoinDesk reported on October 7 that the negotiations would involve Payward supplying liquidity for crypto trading, though no deal has been confirmed. The discussions come as traditional financial institutions increasingly explore ways to offer cryptocurrency services to clients.
Wells Fargo, one of the largest banks in the United States, and Kraken, a well-established crypto exchange, have not publicly commented on the report. The talks highlight a growing trend of banks seeking to bridge the gap between conventional finance and digital assets, a shift that has accelerated following the approval of spot Bitcoin exchange-traded funds and clearer regulatory guidelines.
Kraken has been expanding its institutional services, and a partnership with a major bank would represent a significant step in legitimizing crypto trading within the banking system. However, regulatory hurdles and internal risk assessments remain key factors in whether such arrangements move forward.
The report does not specify the timeline or terms of the discussions, and the outcome remains uncertain. If finalized, the arrangement could set a precedent for other large banks to enter similar liquidity agreements with crypto platforms.