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

Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a deal valued at up to $550 million. The transaction, which includes both cash and stock, values Bitnomial at $20 billion. According to a press release shared exclusively with CoinDesk, this acquisition enables Payward to shortcut years of regulatory development, effectively expanding its US footprint. 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, including approvals for a designated contract market, a derivatives clearing organization, and a futures commission merchant. While Kraken may trail behind competitors such as OKX, Bybit, and Coinbase in terms of spot trading volumes, it maintains a significant presence in the crypto derivatives market. Kraken is a US-based cryptocurrency exchange that allows users to buy, sell, and trade digital assets like 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. Payward Co-CEO Arjun Sethi emphasized the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities, stating that "the shape of a market is determined by its clearing infrastructure, not its front end." The deal reflects a trend of increased consolidation in the crypto sector, as firms seek to bolster their infrastructure and capabilities following a prolonged downturn. Larger, well-capitalized players are targeting strategic acquisitions that address gaps in areas such as custody, derivatives, or compliance, rather than prioritizing growth at any cost. Meanwhile, depressed valuations have created opportunities for buyers, and smaller startups facing funding constraints are more open to acquisition, setting the stage for a more pragmatic phase of industry consolidation. Kraken has been scaling up in preparation for 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, according to recent reports, the company has put its IPO plans on hold due to challenging market conditions, with sources indicating that an initial public offering may still be considered once 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. Notable transactions include the $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, marking the largest-ever deal between traditional finance and crypto. This acquisition gave Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to this, Kraken executed smaller acquisitions, such as BCM in 2023 and other platform purchases, 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 the oversight of the Commodity Futures Trading Commission. 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.