Payward, the parent company of cryptocurrency exchange Kraken, has agreed to purchase digital asset derivatives platform Bitnomial for up to $550 million in a cash-and-stock deal, valuing the company at $20 billion. This acquisition provides Payward with a fully licensed U.S.
crypto derivatives stack, enabling the company 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 U.S., including approvals for a designated contract market, a derivatives clearing organization, and a futures commission merchant. The acquisition effectively accelerates Payward's regulatory buildout in the U.S.
by years. While Kraken lags behind platforms such as OKX, Bybit, and Coinbase in terms of spot trading volumes, it remains a significant player in the crypto derivatives market. Kraken is a U.S.-based cryptocurrency exchange that allows users to buy, sell, and trade digital assets like bitcoin and ether using fiat or crypto.
The company 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 core to the company's strategy. The deal activity in the crypto sector has started to pick up after a prolonged downturn, as companies look to consolidate their capabilities and strengthen their infrastructure following years of market volatility and regulatory scrutiny. Larger, better-capitalized players are increasingly targeting acquisitions that address strategic gaps, such as custody, derivatives, or compliance, rather than pursuing growth at any cost.
The acquisition of Bitnomial is part of Kraken's efforts to scale up ahead of its planned initial public offering (IPO), which was confidentially submitted to the U.S. 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 been pursuing a strategic 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 U.S.-based retail futures platform and CFTC-registered FCM. 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 U.S. clients under Commodity Futures Trading Commission oversight.
The deal also expands Payward Services, the company's B2B infrastructure arm, allowing banks, fintechs, and brokerages to access regulated U.S. 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.