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 transaction values the firm at $20 billion and gives Payward a fully licensed US crypto derivatives stack, significantly accelerating its expansion into regulated markets. Bitnomial, founded over a decade ago, is notable for being the first crypto-native platform to secure all three necessary licenses to operate a full-stack derivatives business in the US.
These licenses include approvals to operate a designated contract market, a derivatives clearing organization, and a futures commission merchant. The acquisition effectively bypasses years of regulatory development for Payward as it seeks to expand its footprint in the US.
While Kraken may trail behind platforms like OKX, Bybit, and Coinbase in terms of spot trading volumes, it maintains a significant presence in the crypto derivatives market. Kraken is a US-based cryptocurrency exchange that allows users to buy, sell, and trade digital assets such as bitcoin and ether using either fiat or crypto.
The platform 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 acquisition of Bitnomial, with its crypto-native settlement, collateral, and 24/7 trading capabilities, is core to Payward's strategy.
Sethi emphasized that 'the shape of a market is determined by its clearing infrastructure, not its front end.' The deal activity in the crypto sector has started to increase following a prolonged downturn, with firms now focusing on consolidating capabilities and strengthening infrastructure after years of market volatility and regulatory scrutiny. Larger, well-capitalized players are targeting acquisitions that fill strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost. Meanwhile, depressed valuations have created opportunities for buyers, and 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 having confidentially submitted a draft S-1 to the US Securities and Exchange Commission on November 19 last year. However, due to difficult market conditions, the firm has put its IPO plans on hold, although it is still considering an initial public offering once market conditions improve.
In recent years, Kraken has pursued a targeted yet increasingly strategic M&A strategy aimed at expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. One of its most significant transactions was the $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM. This marked the largest-ever deal between traditional finance and crypto, giving Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to that, Kraken executed smaller acquisitions such as BCM in 2023 and other platform or exchange purchases, including the later acquisition of Small Exchange, all aimed at building out its derivatives and institutional capabilities.
Overall, Kraken's deal activity signals a clear strategy of using M&A to acquire regulatory licenses, trading infrastructure, and user bases that help it evolve into a broader, institutional-grade, multi-asset trading platform spanning both crypto and traditional markets. The combined platform resulting from the Bitnomial acquisition will integrate the regulated infrastructure of Bitnomial with Payward's global distribution and liquidity across brands including Kraken and NinjaTrader.
Initial offerings are expected to include spot margin, perpetual futures, and options for US clients under the oversight of the Commodity Futures Trading Commission. Payward has been building out its derivatives business globally, including the acquisition of a UK crypto futures platform in 2019 and the launch of an EU offering in 2025.
With Bitnomial, it now adds a fully regulated US stack to its portfolio. 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.
According to Sethi, 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible.'