Payward Acquires Bitnomial for $550 Million to Expand Regulated US Crypto Derivatives

Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a cash-and-stock deal valued at up to $550 million. The transaction, which values Bitnomial at $20 billion, 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. This acquisition is expected to accelerate Payward's expansion in regulated markets, particularly in the US. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure all three necessary licenses to operate a full-stack derivatives business in the US. The deal allows Payward to shortcut years of regulatory buildout, effectively expanding its US footprint. Kraken, which trails other platforms in spot trading volumes, remains a significant player in the crypto derivatives market. The company has been expanding its services to include derivatives, staking, and custody, positioning itself as a more comprehensive trading platform. According to Payward Co-CEO Arjun Sethi, the acquisition of Bitnomial is core to the company's strategy, highlighting the platform's crypto-native settlement, collateral, and 24/7 trading capabilities. The deal activity in the crypto sector has been increasing after a prolonged downturn, with firms looking to consolidate capabilities and shore up infrastructure. Larger players are targeting acquisitions that fill strategic gaps, such as custody, derivatives, or compliance. The acquisition of Bitnomial is part of Kraken's strategic expansion plans, which include scaling up ahead of its planned initial public offering. Although the company has put its IPO plans on hold due to difficult market conditions, it is still considering an initial public offering when market conditions improve. Kraken has been pursuing a targeted M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The acquisition of Bitnomial follows other significant transactions, including the $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.