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 gives Payward a fully licensed US crypto derivatives stack, allowing it to expand its presence in the US market. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure all 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 enables Payward to shortcut years of regulatory development, effectively accelerating its US expansion. Kraken, while trailing other platforms in spot trading volumes, remains a significant player in the crypto derivatives market.
The company 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 is core to the company's strategy, highlighting the platform's crypto-native settlement, collateral, and 24/7 trading capabilities as key factors. The deal comes as the crypto sector experiences increased consolidation, with larger, better-capitalized players targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, and compliance.
Kraken has been scaling up ahead of its planned initial public offering, 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 difficult market conditions. 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 marks a significant step in this strategy, providing Kraken with a fully regulated US derivatives stack and expanding its derivatives business globally.
The combined platform will integrate Bitnomial's regulated infrastructure with Payward's global distribution and liquidity, offering spot margin, perpetual futures, and options for US clients under Commodity Futures Trading Commission oversight. The deal is expected to close in the first half of 2026, pending customary conditions and regulatory filings.