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 grants Payward a fully licensed US crypto derivatives stack, enabling the company to bypass years of regulatory development as it expands its presence in the US market. Bitnomial, founded over a decade ago, 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.
The acquisition strengthens Kraken's position in the crypto derivatives market, where it is a major player, despite trailing behind platforms like OKX, Bybit, and Coinbase in spot trading volumes. Kraken has been expanding 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, the acquisition of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities is core to the company's strategy, as 'the shape of a market is determined by its clearing infrastructure, not its front end.' The deal is part of a larger trend of consolidation in the crypto sector, where firms are seeking to enhance their capabilities and infrastructure following years of market volatility and regulatory scrutiny. Larger players are targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, or compliance, rather than pursuing growth at any cost. Meanwhile, depressed valuations have created opportunities for buyers, and 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 in November last year.
However, the company has put its IPO plans on hold due to challenging 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 acquisition of Bitnomial follows Kraken's $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, which marked 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, with initial offerings 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, covering 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.'