Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a cash-and-stock transaction valued at up to $550 million. This deal gives Payward a fully licensed US crypto derivatives stack, allowing it to bypass years of regulatory development as it expands its US footprint.
Founded over a decade ago, Bitnomial is the first crypto-native platform to secure the 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. While Kraken lags behind platforms like OKX, Bybit, and Coinbase in spot trading volumes, it remains a significant player in the crypto derivatives market.
Kraken is a US-based cryptocurrency exchange that enables users to buy, sell, and trade digital assets like bitcoin and ether using 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.
According to Payward Co-CEO Arjun Sethi, Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities are central to the company's strategy, as 'the shape of a market is determined by its clearing infrastructure, not its front end.' The acquisition is part of a larger trend of deal activity in the crypto sector, where firms are consolidating capabilities and strengthening infrastructure following years of market volatility and regulatory scrutiny. Larger, better-capitalized players are targeting acquisitions that fill strategic gaps, such as custody, derivatives, or compliance, rather than pursuing growth at any cost. The deal also reflects the current state of the industry, where depressed valuations have created opportunities for buyers, and smaller startups facing funding constraints are more open to being acquired.
Kraken has been scaling up ahead of its planned initial public offering, having confidentially submitted a draft S-1 to the US Securities and Exchange Commission in November last year. However, the company has put its IPO plans on hold due to difficult market conditions, with sources indicating that it is still considering an initial public offering but likely not until market conditions improve. In recent years, Kraken has pursued a targeted M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The company's most significant transaction was its $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.
The acquisition of Bitnomial is expected to integrate the platform'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 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. As Payward Co-CEO Arjun Sethi noted, 'We are not acquiring a company.
We are adding the infrastructure layer that makes the next generation of US derivatives possible.'