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 cash-and-stock deal valued at 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 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, derivatives clearing organization, and futures commission merchant. The acquisition enables Payward to bypass years of regulatory development as it expands its presence in the US market. Kraken, a major US-based cryptocurrency exchange, allows users to buy, sell, and trade digital assets like bitcoin and ether using fiat or crypto. It 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, Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities are crucial to the company's strategy, stating that 'the shape of a market is determined by its clearing infrastructure, not its front end.' The deal is part of a growing trend of consolidation in the crypto sector, as firms seek to strengthen their capabilities and infrastructure following years of market volatility and regulatory scrutiny. Larger, well-capitalized players are targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, or compliance, rather than pursuing growth at any cost. The acquisition of Bitnomial is a significant step in Kraken's strategy to expand beyond pure crypto trading into multi-asset and derivatives infrastructure. The company has been scaling up ahead of its planned initial public offering (IPO), having submitted a draft S-1 to the US Securities and Exchange Commission in November last year. However, according to sources, Kraken has put its IPO plans on hold due to difficult market conditions. In recent years, Kraken has pursued a targeted M&A strategy focused on expanding its derivatives and institutional capabilities, including the 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 is expected to close in the first half of 2026, pending customary conditions and regulatory filings. As stated by Sethi, 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible.'