Wells Fargo is in talks with Kraken's parent company to provide crypto liquidity

According to CoinDesk, citing two individuals with direct knowledge, Kraken's parent company Payward is in talks with Wells Fargo to become its cryptocurrency liquidity provider. Under the potential arrangement, Wyoming-based Payward would supply liquidity for digital asset trading. The individuals requested anonymity as the matter is not yet public, negotiations are ongoing, and an agreement may not be reached. Both Payward and Wells Fargo declined to comment.

The report states that cryptocurrency exchanges often serve as a gateway for banks and institutional investors to access digital asset liquidity, providing access to trading venues and assisting in order execution. Wells Fargo previously served as the exclusive capital markets advisor for Nasdaq, which agreed in September to invest $100 million in Payward and deepen collaboration in tokenized stocks and market surveillance. CoinDesk also reported that Payward was in talks last week with custodian bank BNY regarding financial infrastructure collaboration.