Payward in talks to become Wells Fargo's crypto liquidity provider

On October 8, according to CoinDesk, Payward (the parent company of cryptocurrency exchange Kraken) is in talks with US financial institution Wells Fargo to serve as its crypto liquidity provider. Sources familiar with the matter stated that the potential deal would allow Payward to provide liquidity support for Wells Fargo's cryptocurrency trading activities. Both parties remain in the negotiation phase, and it remains uncertain whether a final agreement will be reached. Neither organization has commented on the matter.

This development indicates that traditional large banks are accelerating their penetration into the cryptocurrency sector. Analysts suggest that under a more favorable recent regulatory environment, major financial institutions have begun viewing mature digital asset firms like Payward as important business partners, leveraging professional service providers to expand their own digital asset strategies.

Wells Fargo has previously made significant inroads in the digital asset space, including offering spot Bitcoin ETFs to qualified wealthy clients and backing crypto compliance firm Elliptic and trading technology provider Talos. The bank has expanded its digital assets team this year and served as the exclusive capital markets advisor for Nasdaq's $100 million investment in Payward.