Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Bitnomial, a digital asset derivatives platform, in a cash-and-stock deal valued at up to $550 million. This transaction values the firm at $20 billion, as stated in a press release shared exclusively with CoinDesk.

Founded over a decade ago, Bitnomial is the first crypto-native platform to secure the three necessary licenses to operate a full-stack derivatives business in the US, including approvals for a designated contract market, a derivatives clearing organization, and a futures commission merchant. This acquisition effectively bypasses years of regulatory development for Payward as it expands its US footprint. While Kraken lags behind platforms like OKX, Bybit, and Coinbase in terms of spot trading volumes, it remains a significant player in the crypto derivatives market.

Kraken, a US-based cryptocurrency exchange, allows users to buy, sell, and trade digital assets like bitcoin and ether using fiat or crypto, and 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, 'The shape of a market is determined by its clearing infrastructure, not its front end,' highlighting Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities as core to the strategy.

The deal activity in the crypto sector has started to pick up after a prolonged downturn, with firms seeking to consolidate capabilities and strengthen infrastructure following years of market volatility and regulatory scrutiny. Larger, better-capitalized players are increasingly targeting acquisitions that fill strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost.

At the same time, depressed valuations have created opportunities for buyers, while 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), with Payward confidentially submitting a draft S-1 to the US Securities and Exchange Commission on November 19 last year. However, according to recent reports, the firm has put its IPO plans on hold due to difficult market conditions.

Kraken has pursued a relatively targeted but increasingly strategic M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The most significant transaction was its $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, marking the largest-ever deal between traditional finance and crypto and giving Kraken a direct foothold in US derivatives markets and a large base of futures traders.

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. 'We are not acquiring a company.

We are adding the infrastructure layer that makes the next generation of US derivatives possible,' Sethi stated in emailed comments.