Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a deal valued at up to $550 million. The acquisition is a cash-and-stock transaction that values Bitnomial at $20 billion. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure all three licenses required to operate a full-stack derivatives business in the U.S., including a designated contract market, a derivatives clearing organization, and a futures commission merchant. The acquisition will enable Payward to expand its U.S.
footprint and shortcut years of regulatory buildout. Kraken is a major player in the crypto derivatives market, offering users the ability to buy, sell, and trade digital assets like bitcoin and ether using fiat or crypto.
The company has expanded into services such as derivatives, staking, and custody, positioning itself as a full-service trading platform. Payward Co-CEO Arjun Sethi stated that the acquisition is core to the company's strategy, pointing to Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities. The deal activity in the crypto sector has begun to pick up after a prolonged downturn, with firms looking to consolidate capabilities and shore up infrastructure following years of market volatility and regulatory scrutiny.
Kraken has been scaling up ahead of its planned initial public offering, having confidentially submitted a draft S-1 to the U.S. Securities and Exchange Commission. However, the company has put its IPO plans on hold due to difficult market conditions.
The acquisition of Bitnomial is part of Kraken's strategic M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The combined platform will integrate Bitnomial's regulated infrastructure with Payward's global distribution and liquidity, offering spot margin, perpetual futures, and options for U.S. clients under Commodity Futures Trading Commission oversight. The deal is expected to close in the first half of 2026, pending customary conditions and regulatory filings.