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

Kraken's parent company, Payward, 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 grants Payward a fully licensed US crypto derivatives stack. Bitnomial, founded over a decade ago, is the first crypto-native platform to obtain all three necessary licenses to operate a full-stack derivatives business in the US. The acquisition enables Payward to shortcut years of regulatory development as it expands its US footprint. Kraken, a major player in the crypto derivatives market, trails behind platforms like OKX, Bybit, and Coinbase in spot trading volumes. The company has expanded its services to include derivatives, staking, and custody, positioning itself as a full-service trading platform. Payward Co-CEO Arjun Sethi emphasized the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities in the company's strategy. The deal activity in the crypto sector has picked up after a prolonged downturn, with firms seeking to consolidate capabilities and strengthen infrastructure following years of market volatility and regulatory scrutiny. Larger players are targeting acquisitions that fill strategic gaps, 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 (IPO), having confidentially submitted a draft S-1 to the US Securities and Exchange Commission. However, the company has put its IPO plans on hold due to difficult market conditions. Kraken has pursued a targeted M&A strategy, expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The acquisition of Bitnomial is the latest move in this strategy, which aims to evolve Kraken into a broader, institutional-grade, multi-asset trading platform spanning crypto and traditional markets. 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.