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 company at $20 billion and provides Payward with a fully licensed US crypto derivatives stack, enabling it to expand its presence in regulated markets. 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 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 grows its US footprint. Kraken, a major player in the crypto derivatives market, 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, Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities are crucial to the company's strategy, as the shape of a market is determined by its clearing infrastructure, not its front end. The deal activity in the crypto sector has picked up after a prolonged downturn, with firms looking to consolidate capabilities and strengthen infrastructure following years of market volatility and regulatory scrutiny.
Larger, better-capitalized players are targeting acquisitions that fill strategic gaps, such as custody, derivatives, or compliance, rather than pursuing growth at any cost. The acquisition of Bitnomial is part of Kraken's strategic expansion plan, which includes scaling up ahead of its planned initial public offering (IPO). Payward has been pursuing a targeted M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure.
The company has executed several 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 across brands, including Kraken and NinjaTrader. Initial offerings are 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, which covers 100% of Bitnomial's equity, is expected to close in the first half of 2026, pending customary conditions and regulatory filings.