Payward, the parent company of cryptocurrency exchange Kraken, has agreed to purchase digital asset derivatives platform Bitnomial for up to $550 million in a cash-and-stock deal, valuing the company at $20 billion. This acquisition provides Payward with a fully licensed US crypto derivatives stack, allowing it to expand its presence in regulated markets.
Bitnomial, founded over a decade ago, is the first crypto-native platform to obtain all three necessary licenses to operate a full-stack derivatives business in the US. The acquisition enables Payward to shortcut years of regulatory development as it expands its US footprint. Kraken, a major player in the crypto derivatives market, trails platforms like OKX, Bybit, and Coinbase in spot trading volumes but has expanded its services to include derivatives, staking, and custody. The deal activity in the crypto sector has picked up after a prolonged downturn, with firms focusing on consolidating capabilities and shoring up infrastructure.
Payward Co-CEO Arjun Sethi stated that 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 key to the strategy. Kraken has been scaling up ahead of its planned initial public offering, having confidentially submitted a draft S-1 to the US Securities and Exchange Commission.
However, the firm has put its IPO plans on hold due to difficult market conditions. The acquisition of Bitnomial is part of Kraken's strategic M&A strategy, focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. 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.