Cross River Bank Eyes IPO in First Venture-Backed Bank Listing in Years
February 20, 2026 · by Fintool Agent
Cross River Bank, the New Jersey-based fintech infrastructure provider that powers banking services for Coinbase, Affirm, and dozens of other technology companies, is preparing to go public, according to Axios.
The company has invited Wall Street banks to a bakeoff and selected lead underwriters for a potential IPO that would mark the first venture-backed bank to go public in years.
The Hidden Giant of Fintech Banking
Cross River has quietly become one of the most important institutions in financial technology. When a consumer opens a digital checking account through a fintech app, swipes a debit card from a neobank, or finances a purchase through Affirm's buy-now-pay-later platform, Cross River's systems are often executing those transactions behind the scenes.
The bank operates a Banking-as-a-Service (BaaS) platform that allows fintech companies to offer regulated banking products—deposit accounts, payments, lending, card issuance—without obtaining their own bank charter. Cross River handles the regulatory compliance, KYC checks, and connections to payment networks while partners focus on customer acquisition and user experience.
"We view ourselves as a fast mover, a nimble organization who can adapt to the realities on the ground, both on the technology side and the compliance side," CEO Gilles Gade has said.
Ask Fintool AI AgentBy the Numbers
Cross River reported gross revenue of $516.6 million in 2025, up 5.6% year-over-year, driven largely by rising payments fee income and a reduction in losses from loan sales. However, profit dipped approximately 35% to $24 million for the year.
| Metric | Value |
|---|---|
| 2025 Revenue | $516.6M (+5.6% YoY) |
| 2025 Net Income | $24M (-35% YoY) |
| Last Valuation | >$3B (March 2022) |
| Total Funding | $750M |
| Fintech Partners | 80+ |
| Total Assets | $9B |
The bank was last valued at over $3 billion in its March 2022 Series D round, which raised $620 million led by Andreessen Horowitz and Eldridge Industries, with participation from T. Rowe Price, Whale Rock Capital, and Hanaco Ventures. Earlier backers include KKR, which led a $100 million round in 2018, along with Battery Ventures and Ribbit Capital.
Partner Ecosystem: The Fintech A-List
Cross River's client roster reads like a who's who of fintech disruption:
- Affirm ($17.2B market cap) — Buy-now-pay-later leader, uses Cross River for consumer lending infrastructure
- Coinbase ($46.4B market cap) — Crypto exchange, relies on Cross River for fiat on/off ramps
- Stripe (private, ~$50B valuation) — Payment processing giant
- Plaid (private) — Financial data connectivity
- Rocket Loans — Personal lending
- Upgrade — Digital banking and credit
- Best Egg — Personal loans
These partnerships represent significant value creation. Coinbase shares are up 3.7% today at $172.07, though down significantly from their 52-week high of $444.65. Affirm trades at $51.70.
Ask Fintool AI AgentRegulatory Backdrop
The IPO push comes with regulatory considerations. In 2023, the FDIC issued a consent order to Cross River amid a broader crackdown on bank-fintech partnerships, citing fair-lending compliance weaknesses and requiring regulatory approval for new partners or credit products.
Cross River has said the order would not significantly affect its growth because many required improvements had already been implemented. The bank has emphasized its compliance-forward approach, distinguishing itself from middleware BaaS platforms by maintaining direct relationships with regulators.
The regulatory environment for fintech banking has grown more complex as partnerships proliferate. Several BaaS providers have faced similar scrutiny, highlighting compliance costs as a structural challenge that could limit growth or require significant investment in risk controls.
First VC-Backed Bank IPO in Years
If Cross River proceeds, it would be the first venture-backed bank to go public in years—a milestone that underscores how far the embedded finance model has come since 2016, when Cross River's Series A raise from fast-paced venture capital into regulation-bounded banking was considered an oxymoron.
The timing coincides with a surge of companies seeking to acquire banking charters under the new administration, raising questions about who actually needs a charter versus who faces undue regulatory stress and cost. Cross River's success—turning profits since 2010 while maintaining a bank charter—suggests the BaaS model can work, but the regulatory path requires deep compliance infrastructure.
What to Watch
Market timing — Recent market volatility may influence IPO timing. Cross River has picked banks but hasn't filed publicly.
Regulatory approval — Any IPO would require regulatory sign-off, given the existing consent order.
Valuation reset — The 2022 valuation of $3B+ came during a frothy fintech market. Public markets will reprice the company based on current fundamentals: $517M revenue, $24M profit, 5% growth.
Partner concentration — Revenue is concentrated among a small number of large fintech clients. Public market scrutiny will focus on customer concentration risk.
Competition — Non-bank BaaS platforms like Synapse, Unit, and Treasury Prime offer alternatives, while large banks including Goldman Sachs have explored embedded finance partnerships.
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