Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a cash-and-stock deal worth up to $550 million. This transaction values the company at $20 billion and grants 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 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. The acquisition allows Payward to bypass years of regulatory development, accelerating its US expansion. Kraken, a major player in the crypto derivatives market, trails behind platforms like OKX, Bybit, and Coinbase in spot trading volumes but remains a significant player in the 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, and has expanded into services such as derivatives, staking, and custody.
According to Payward Co-CEO Arjun Sethi, Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities are core to the company's strategy. The deal activity in the crypto sector has begun to pick up after a prolonged downturn, with firms seeking to consolidate capabilities and enhance 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 acquisition of Bitnomial is part of Kraken's strategy to scale up ahead of its planned initial public offering (IPO), which was confidentially submitted 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. 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 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 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.