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 move values the firm at $20 billion and grants Payward a fully licensed US crypto derivatives stack, according to a press release.
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, a derivatives clearing organization, and a futures commission merchant. The acquisition allows Payward to bypass years of regulatory development as it expands its US footprint. Kraken, while trailing behind platforms like OKX, Bybit, and Coinbase in spot trading volumes, remains a significant player in the crypto derivatives market. The exchange has expanded its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail app.
Payward Co-CEO Arjun Sethi emphasized the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities in shaping the market. The deal marks a strategic move in the crypto sector, which has seen increased consolidation as firms seek to strengthen their infrastructure and capabilities amidst market volatility and regulatory scrutiny. Larger players are targeting acquisitions that fill strategic gaps, such as custody, derivatives, or compliance, rather than pursuing growth at any cost. Kraken has been scaling up ahead of its planned initial public offering (IPO), 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 follows significant transactions, including the $1.5 billion acquisition of NinjaTrader in 2025, a US-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 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. According to Sethi, the acquisition adds the infrastructure layer that makes the next generation of US derivatives possible.