Payward buys HK's Reap Tech for $600M
Kraken parent Payward has acquired Hong Kong stablecoin payments firm Reap Technologies for $600 million, signaling a strategic pivot to use the city as its primary entry point for Asian markets.
Payward, the parent company of US cryptocurrency exchange Kraken, has completed a $600 million acquisition of Hong Kong-based Reap Technologies. The deal marks Payward’s first and largest acquisition in Asia, targeting a stablecoin-native payments infrastructure provider.
For investors and market professionals, the size of the transaction signals a decisive strategic shift by a top-tier exchange to build operational capacity in Asia. Acquiring Reap gives Payward immediate access to established payment rails rather than forcing the exchange to build that infrastructure from scratch. This move allows Kraken’s parent company to offer stablecoin settlement services directly to corporate clients across multiple time zones.
Arjun Sethi, Co-CEO of Payward, identified Hong Kong as the company’s definitive gateway for regional expansion. “We’re going to expand into Asia, including expansion into Singapore, through Hong Kong. This is our gateway as a company and that’s what we decided,” Sethi said.
Sethi noted that while Hong Kong and Singapore naturally attract distinct financial services, the former’s strategic value is deeply rooted in its history. “The city’s unique positioning stemmed from its century-long role as a gateway for international business,” he said.
Beyond serving as a regional headquarters, Sethi framed Hong Kong’s adoption of stablecoins and blockchain as a mechanism to transform the city into a continuous, round-the-clock global liquidity hub. This infrastructure development has direct implications for cross-border capital flows.
According to Sethi, this round-the-clock liquidity solves specific capital access bottlenecks in emerging markets. He emphasized that the technology enables businesses operating in regions with weak banking infrastructure, particularly Africa and Latin America, to access capital at any time.
The $600 million commitment reflects a major strategic investment by Payward in Hong Kong. As global regulators take varied approaches to digital assets, the city is attempting to distinguish itself by setting clear rules. By positioning its Asian operations in Hong Kong, Payward is aiming to leverage this environment to capture international liquidity and serve businesses globally.
