Payward Acquires Bitnomial for $550 Million, Gaining Control of US Crypto Derivatives

Payward, the parent company of cryptocurrency exchange Kraken, has agreed to purchase digital asset derivatives platform Bitnomial for up to $550 million in a cash-and-stock deal. This transaction values the company at $20 billion. Bitnomial is 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. The acquisition allows Payward to bypass years of regulatory development as it expands its presence in the US. Kraken, while trailing other platforms in spot trading volumes, remains a significant player in the crypto derivatives market. It offers users the ability to buy, sell, and trade digital assets like bitcoin and ether using fiat or crypto, and has expanded into services such as derivatives, staking, and custody. According to Payward Co-CEO Arjun Sethi, Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities are crucial to the company's strategy. The deal is part of a larger trend of consolidation in the crypto sector, as firms seek to enhance their capabilities and infrastructure following years of market volatility and regulatory scrutiny. Larger companies are targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, or compliance, rather than pursuing growth at any cost. Kraken has been scaling up ahead of its planned initial public offering, 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 difficult market conditions. Kraken has pursued a targeted 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. 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. The deal also expands Payward Services, allowing banks, fintechs, and brokerages to access regulated US derivatives through a single API integration. The transaction, covering 100% of Bitnomial's equity, is expected to close in the first half of 2026, pending customary conditions and regulatory filings.