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

Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Bitnomial, a digital asset derivatives platform, in a cash-and-stock deal worth up to $550 million. This transaction values the firm at $20 billion and was announced in a press release shared exclusively with CoinDesk. Bitnomial, founded over a decade ago, 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. These licenses include approvals to operate a designated contract market, a derivatives clearing organization, and a futures commission merchant. By acquiring Bitnomial, Payward effectively bypasses years of regulatory development as it expands its footprint in the US. While Kraken may trail behind platforms like OKX, Bybit, and Coinbase in terms of spot trading volumes, it remains a significant player in the crypto derivatives market. Kraken is a US-based cryptocurrency exchange that allows users to buy, sell, and trade digital assets such as 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 app. According to Payward Co-CEO Arjun Sethi, the shape of a market is determined by its clearing infrastructure, not its front end, highlighting Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities as core to the strategy. The deal activity in the crypto sector has started to pick up following a prolonged downturn, with firms seeking to consolidate capabilities and strengthen infrastructure after years of market volatility and regulatory scrutiny. Larger, better-capitalized players are targeting acquisitions that fill strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost. At the same time, depressed valuations 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, due to difficult market conditions, the firm has put its IPO plans on hold. According to sources, the company is still considering an initial public offering but likely not until 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. One of its most significant transactions was the $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM. This marked the largest-ever deal between traditional finance and crypto, giving Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to that, Kraken executed smaller acquisitions 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.