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, allowing it to expand its presence in the US 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, including approvals to operate a designated contract market, a derivatives clearing organization, and a futures commission merchant. The acquisition enables Payward to shortcut years of regulatory development as it grows its US footprint.
Kraken, which trails other platforms in spot trading volumes, remains a significant player in the crypto derivatives market. The company has expanded its services to include derivatives, staking, and custody, positioning itself as a full-service 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 core to the company's strategy. The deal comes as the crypto sector experiences increased consolidation, with larger players targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, and 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 in November last year. However, the company has reportedly put its IPO plans on hold due to challenging 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 most significant transaction was its $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, 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.