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 Bitnomial at $20 billion and grants Payward control of a fully licensed US crypto derivatives stack, significantly advancing its presence in regulated markets.
Bitnomial, established over a decade ago, is notable for being 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, a derivatives clearing organization, and a futures commission merchant. This acquisition essentially bypasses years of regulatory development for Payward as it expands its footprint in the US.
Kraken, while trailing behind platforms such as OKX, Bybit, and Coinbase in terms of spot trading volumes, remains a significant player in the crypto derivatives market. It offers users the ability to buy, sell, and trade digital assets like bitcoin and ether using either fiat or crypto and has diversified into services including derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail application. According to Payward Co-CEO Arjun Sethi, the shape of a market is defined by its clearing infrastructure rather than its frontend, highlighting the strategic importance of Bitnomial’s crypto-native settlement, collateral, and 24/7 trading capabilities. The deal activity in the crypto sector has started to increase following a prolonged downturn, with firms seeking to consolidate capabilities and strengthen infrastructure after years of market volatility and regulatory scrutiny.
Larger, well-capitalized players are targeting acquisitions that address strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost. At the same time, depressed valuations have created opportunities for buyers, while smaller startups facing funding constraints are more open to acquisition, setting the stage for a more pragmatic phase of industry consolidation.
Kraken has been scaling up ahead of its planned initial public offering (IPO), with Payward having submitted a draft S-1 to the US Securities and Exchange Commission on November 19 last year. However, due to challenging market conditions, the firm has reportedly put its IPO plans on hold, with sources indicating that the company is still considering an initial public offering but likely not until market conditions improve. In recent years, Kraken has pursued a targeted yet increasingly strategic M&A strategy aimed at expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. A notable 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.
Prior to that, Kraken executed smaller acquisitions such as BCM in 2023 and other platform purchases, including the later acquisition of Small Exchange, aimed at building out its derivatives and institutional capabilities. Overall, Kraken’s deal activity signals a clear strategy of using M&A to acquire regulatory licenses, trading infrastructure, and user bases that help it evolve into a broader, institutional-grade, multi-asset trading platform spanning both 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, with initial offerings expected to include spot margin, perpetual futures, and options for US clients under the oversight of the Commodity Futures Trading Commission. Payward has been building out its derivatives business globally, acquiring a UK crypto futures platform in 2019 and launching an EU offering in 2025, and 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, covering 100% of Bitnomial’s equity, is expected to close in the first half of 2026, pending customary conditions and regulatory filings.
According to Sethi, 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible.'