Wells Fargo and Kraken owner Payward discuss crypto liquidity

Wells Fargo is in talks with Payward, the parent company of crypto exchange Kraken, about supplying liquidity for crypto trades, a possible way for the bank to support digital asset trading. CoinDesk reported on Oct. 7 that two people with direct knowledge of the discussions described the potential arrangement. Liquidity means having enough buyers and sellers, or a provider ready to help fill trades.

What would Payward provide to Wells Fargo?

Payward would supply liquidity for trading crypto assets under the potential deal, the sources told CoinDesk. The report did not say which assets might be covered, who would trade them, or how orders would be handled.

CoinDesk said crypto exchanges can connect banks and institutional investors to trading venues and help execute orders. Kraken also offers banks technology to add crypto trading to their own platforms. But the report did not confirm that Wells Fargo would use a particular Kraken or Payward service.

Have the two companies agreed to a deal?

No. The talks are ongoing and may not result in an agreement, according to CoinDesk. Both Payward and Wells Fargo declined to comment. No terms, launch date or customer access plan have been disclosed.

That leaves the scope of any possible service unclear. The discussions concern crypto trading liquidity; the report did not say they involve custody, payments or a bank purchase of digital assets.

What crypto work has Wells Fargo already announced?

Wells Fargo already offers spot bitcoin exchange-traded funds to eligible wealth clients, CoinDesk reported. The bank has also backed crypto compliance firm Elliptic and trading technology provider Talos, and announced plans for blockchain-based deposits.

CoinDesk also reported that Wells Fargo advised Nasdaq on its September agreement to invest $100 million in Payward and expand work on tokenized equities and market surveillance. That is a separate relationship from the liquidity talks. Together, these reported activities show why a potential trading link matters: established financial firms are exploring ways to connect existing banking services with digital asset markets, while the details and outcome of the Wells Fargo-Payward discussions remain unknown.

References

• CoinDesk reported on Oct. 7 — coindesk.com