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 transaction valued at up to $550 million. This deal values the firm at $20 billion and gives Payward a fully licensed US crypto derivatives stack, according to a press release. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure all necessary licenses to operate a full-stack derivatives business in the US, including approvals to operate a designated contract market, a derivatives clearing organization, and a futures commission merchant. This acquisition will effectively shortcut years of regulatory buildout for Payward as it expands its US footprint. Kraken, while trailing other platforms in spot trading volumes, remains a significant player in the crypto derivatives market. The company has expanded into services such as derivatives, staking, and custody, positioning itself as a more comprehensive trading platform. 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 activity in the crypto sector has begun to pick up after a prolonged downturn, with firms looking to consolidate capabilities and shore up 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. Depressed valuations have created opportunities for buyers, while smaller startups facing funding constraints are more open to being acquired, setting the stage for a more pragmatic phase of industry consolidation. 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 firm has put its IPO plans on hold due to difficult market conditions, with sources indicating that the company is still considering an initial public offering but probably 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 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 and giving Kraken a direct foothold in US derivatives markets and a large base of futures traders. 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. 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. Sethi stated, 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible.'