Payward Acquires Bitnomial for $550 Million to Expand 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 worth up to $550 million. The transaction, which is expected to close in the first half of 2026, will give Payward control over a fully licensed US crypto derivatives stack, enabling it to expand its presence in regulated markets. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure all three licenses required to operate a full-stack derivatives business in the US. The acquisition will allow Payward to shortcut years of regulatory buildout as it expands its US footprint. Kraken, which trails platforms like OKX, Bybit, and Coinbase in spot trading volumes, remains a major player in the crypto derivatives market. The company has expanded into services such as derivatives, staking, and custody, positioning itself as a more full-service trading platform beyond a basic retail app. Payward Co-CEO Arjun Sethi noted that the shape of a market is determined by its clearing infrastructure, not its front end, highlighting Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities as core to the strategy. The deal activity in the crypto sector has begun to pick up after a prolonged downturn, as firms look to consolidate capabilities and shore up infrastructure following years of market volatility and regulatory scrutiny. Larger, better-capitalized players are increasingly 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 on November 19 last year. However, the company has put its IPO plans on hold due to difficult market conditions. In recent years, Kraken has pursued a relatively targeted but increasingly strategic M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The acquisition of Bitnomial is the latest example of 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 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. 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. According to Sethi, 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible.'