Payward Acquires Bitnomial for $550 Million, Expanding Its US Crypto Derivatives Presence

Payward, the parent company of cryptocurrency exchange Kraken, has entered into an agreement to acquire digital asset derivatives platform Bitnomial for a sum of up to $550 million in cash and stock. This transaction values the company at $20 billion, according to a press release shared with CoinDesk. Bitnomial is notable for being the first crypto-native platform to obtain all three necessary licenses to operate a full-stack derivatives business in the US, including approvals for a designated contract market, a derivatives clearing organization, and a futures commission merchant. This acquisition effectively bypasses years of regulatory development for Payward as it seeks to expand its footprint in the US. While Kraken may trail behind other platforms such as OKX, Bybit, and Coinbase in terms of spot trading volumes, it maintains a significant presence in the crypto derivatives market. Kraken, a US-based cryptocurrency exchange, allows users to buy, sell, and trade digital assets like bitcoin and ether using either fiat or crypto. The platform has expanded its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail application. Payward Co-CEO Arjun Sethi highlighted the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities, stating that 'the shape of a market is determined by its clearing infrastructure, not its front end.' The deal marks a significant development in the crypto sector, which has seen increased consolidation activity following a prolonged downturn. Larger, well-capitalized firms are now targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, or compliance, rather than pursuing growth at any cost. The depressed valuations in the market have created opportunities for buyers, while smaller startups facing funding constraints are more open to being acquired, setting the stage for a more pragmatic phase of industry consolidation. Kraken has been scaling up ahead of its planned initial public offering (IPO), with Payward having confidentially submitted a draft S-1 to the US Securities and Exchange Commission on November 19 last year. However, according to sources, the company has put its IPO plans on hold due to challenging market conditions, with an initial public offering potentially on the table once market conditions improve. In recent years, Kraken has pursued a targeted yet increasingly strategic M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The company's most significant transaction was its $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, marking the largest-ever deal between traditional finance and crypto. This acquisition gave Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to that, Kraken executed smaller tuck-in acquisitions such as BCM in 2023 and other platform or exchange purchases, including the later acquisition of Small Exchange, aimed at building out its derivatives and institutional capabilities. Overall, Kraken's deal activity signals a clear strategy of using M&A to acquire regulatory licenses, trading infrastructure, and user bases that help it evolve into a broader, institutional-grade, multi-asset trading platform spanning both crypto and traditional markets. The combined platform will integrate Bitnomial's regulated infrastructure with Payward's global distribution and liquidity across brands including Kraken and NinjaTrader. Initial offerings are expected to include spot margin, perpetual futures, and options for US clients under Commodity Futures Trading Commission oversight. Payward has been building out its derivatives business globally, acquiring a UK crypto futures platform in 2019 and launching an EU offering in 2025. With Bitnomial, it now adds a fully regulated US stack. The deal also expands Payward Services, the firm's B2B infrastructure arm, allowing banks, fintechs, and brokerages to access regulated US derivatives through a single API integration. The transaction, which covers 100% of Bitnomial's equity, is expected to close in the first half of 2026, pending customary conditions and regulatory filings. 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible,' Sethi said in emailed comments.