Payward, the parent company of crypto exchange Kraken, has entered into an agreement to acquire digital asset derivatives platform Bitnomial for a sum of up to $550 million in a cash-and-stock deal, valuing the company at $20 billion. This move, as disclosed in a press release shared with CoinDesk, signals a significant expansion of Payward's footprint in the US derivatives market. Bitnomial, founded over a decade ago, boasts the distinction of being the first crypto-native platform to obtain all 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, expediting its expansion in the US. Kraken, while trailing behind platforms like OKX, Bybit, and Coinbase in terms of spot trading volumes, maintains a significant presence in the crypto derivatives market. The exchange allows users to buy, sell, and trade digital assets such as bitcoin and ether using either fiat or crypto, and has diversified its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail application. According to Payward Co-CEO Arjun Sethi, the acquisition of Bitnomial, with its crypto-native settlement, collateral, and 24/7 trading capabilities, is central to the company's strategy, emphasizing that 'the shape of a market is determined by its clearing infrastructure, not its front end.' The deal comes at a time when the crypto sector is witnessing a resurgence in consolidation activities, with larger, well-capitalized firms seeking to acquire strategic capabilities such as custody, derivatives, or compliance, rather than pursuing unchecked growth.
This trend is driven by the need to bolster infrastructure following years of market volatility and regulatory scrutiny. Meanwhile, depressed valuations have created opportunities for buyers, and smaller startups facing funding constraints are more inclined to consider acquisition offers, setting the stage for a more pragmatic phase of industry consolidation. Kraken has been scaling up its operations in anticipation of its planned initial public offering (IPO), having confidentially submitted a draft S-1 to the US Securities and Exchange Commission in November last year.
However, the company has reportedly put its IPO plans on hold due to challenging market conditions, although it is still considering going public once market conditions improve. In recent years, Kraken has adopted a targeted yet strategic M&A approach, focusing on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. A notable transaction was its $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, marking the largest deal between traditional finance and crypto and providing Kraken with a direct foothold in US derivatives markets and a substantial base of futures traders.
Prior to this, Kraken executed smaller acquisitions aimed at building out its derivatives and institutional capabilities. Overall, Kraken's deal activity underscores a clear strategy of using M&A to acquire regulatory licenses, trading infrastructure, and user bases that facilitate its evolution into a broader, institutional-grade, multi-asset trading platform spanning both crypto and traditional markets.
The combined platform resulting from the Bitnomial acquisition will integrate the latter'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 the oversight of the Commodity Futures Trading Commission. Payward has been expanding its derivatives business globally, having acquired a UK crypto futures platform in 2019 and launched an EU offering in 2025.
With the acquisition of Bitnomial, it now adds a fully regulated US stack to its portfolio. The deal also expands Payward Services, the firm's B2B infrastructure arm, enabling banks, fintechs, and brokerages to access regulated US derivatives through a single API integration. The transaction, covering 100% of Bitnomial's equity, is anticipated to close in the first half of 2026, subject to customary conditions and regulatory filings.
As stated by Sethi, 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible.'