Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a cash-and-stock transaction valued at up to $550 million. This deal values the firm at $20 billion and gives Payward a fully licensed US crypto derivatives stack, including approvals to operate a designated contract market, a derivatives clearing organization, and a futures commission merchant. The acquisition enables Payward to bypass years of regulatory buildout as it expands its US footprint. Kraken, while trailing behind platforms like OKX, Bybit, and Coinbase in spot trading volumes, remains a significant player in the crypto derivatives market.
The exchange offers services such as derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail app. Payward Co-CEO Arjun Sethi emphasized the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities in the company's strategy.
The deal is part of a larger trend of consolidation in the crypto sector, with firms seeking to fill strategic gaps such as custody, derivatives, or compliance. Kraken has been scaling up ahead of its planned initial public offering, having submitted a draft S-1 to the US Securities and Exchange Commission in November last year.
However, the company has put its IPO plans on hold due to difficult market conditions. The acquisition of Bitnomial marks the latest step in Kraken's strategic expansion into multi-asset and derivatives infrastructure, following its $1.5 billion acquisition of NinjaTrader in 2025. The combined platform will integrate Bitnomial's regulated infrastructure with Payward's global distribution and liquidity, offering spot margin, perpetual futures, and options for US 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.