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 acquisition grants Payward control over a fully licensed U.S. crypto derivatives stack, allowing it to bypass years of regulatory development as it expands its presence in the U.S. market.
Founded over a decade ago, Bitnomial is the first crypto-native platform to obtain all necessary licenses to operate a full-stack derivatives business in the U.S., including approvals for a designated contract market, derivatives clearing organization, and futures commission merchant. While Kraken lags behind competitors such as OKX, Bybit, and Coinbase in spot trading volumes, it remains a significant player in the crypto derivatives market. The acquisition is part of Payward's strategy to establish itself as a full-service trading platform, offering services such as derivatives, staking, and custody, in addition to its cryptocurrency exchange. According to Payward Co-CEO Arjun Sethi, the deal's core value lies in Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities, which will shape the future of the market.
The crypto sector has seen increased deal activity following a prolonged downturn, with firms seeking to consolidate capabilities, enhance infrastructure, and address regulatory requirements. Larger, well-capitalized players are targeting strategic acquisitions to fill gaps in areas like custody, derivatives, and compliance, rather than prioritizing growth at any cost. The acquisition of Bitnomial is expected to close in the first half of 2026, pending regulatory approvals.
Kraken has been scaling up ahead of its planned initial public offering, having submitted a draft S-1 to the U.S. Securities and Exchange Commission in November last year.
However, the company has put its IPO plans on hold due to challenging market conditions. Kraken has pursued a targeted M&A strategy, focusing 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, offering spot margin, perpetual futures, and options for U.S.
clients under Commodity Futures Trading Commission oversight. The deal also expands Payward Services, allowing banks, fintechs, and brokerages to access regulated U.S. derivatives through a single API integration.