Kraken's parent company, Payward, has entered into an agreement to acquire Bitnomial, a digital asset derivatives platform, for up to $550 million in cash and stock, valuing the company at $20 billion. This move is part of Payward's strategy to expand its presence in the US derivatives market. 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 will allow Payward to shortcut years of regulatory development, accelerating its US expansion. Kraken, a major player in the crypto derivatives market, will benefit from this acquisition, which will enhance its services, including derivatives, staking, and custody. Payward Co-CEO Arjun Sethi highlighted the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities in the company's strategy.
The deal activity in the crypto sector has been increasing, with larger players targeting acquisitions that fill strategic gaps in areas like custody, derivatives, or compliance. Kraken has been scaling up ahead of its planned initial public offering, having submitted a draft S-1 to the US Securities and Exchange Commission. However, the company 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 the Commodity Futures Trading Commission's oversight.