Payward, the parent company of cryptocurrency exchange Kraken, has announced a cash-and-stock deal to acquire digital asset derivatives platform Bitnomial for up to $550 million. This transaction values the firm at $20 billion and gives Payward a fully licensed US crypto derivatives stack, including a designated contract market, derivatives clearing organization, and futures commission merchant.
The acquisition bolsters Kraken's position in the crypto derivatives market and expands its services beyond spot trading, including derivatives, staking, and custody. According to Payward Co-CEO Arjun Sethi, the deal is crucial for the company's strategy, as 'the shape of a market is determined by its clearing infrastructure, not its front end.' The move is part of a larger trend in the crypto sector, where companies are consolidating capabilities and strengthening infrastructure amid market volatility and regulatory scrutiny. Kraken has been scaling up its operations ahead of a planned initial public offering, having submitted a draft S-1 to the US Securities and Exchange Commission last year. However, the company has put its IPO plans on hold due to difficult market conditions.
The acquisition of Bitnomial marks a significant step in Kraken's strategic expansion into multi-asset and derivatives infrastructure, following its $1.5 billion acquisition of NinjaTrader in 2025. 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. The deal is expected to close in the first half of 2026, pending customary conditions and regulatory filings.