Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Bitnomial, a digital asset derivatives platform, for up to $550 million in a cash-and-stock transaction. This deal values the firm at $20 billion and gives Payward a fully licensed U.S.
crypto derivatives stack, significantly accelerating its expansion in 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 U.S., including approvals for a designated contract market, a derivatives clearing organization, and a futures commission merchant. This acquisition effectively shortcuts years of regulatory buildout for Payward as it expands its U.S. footprint.
Kraken, while trailing behind platforms like OKX, Bybit, and Coinbase in spot trading volumes, remains a significant player in the crypto derivatives market. The exchange has expanded its services to include derivatives, staking, and custody, positioning itself as a more comprehensive trading platform beyond basic retail services. According to Payward Co-CEO Arjun Sethi, 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 core to the strategy.
The deal activity in the crypto sector has started to pick up after a prolonged downturn, with firms looking to consolidate capabilities and shore up infrastructure following years of market volatility and regulatory scrutiny. Larger, better-capitalized players are increasingly targeting acquisitions that fill strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost. At the same time, depressed valuations have created opportunities for buyers, while 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 confidentially submitting a draft S-1 to the U.S.
Securities and Exchange Commission on November 19 last year. However, the firm has put its IPO plans on hold due to difficult market conditions, considering an initial public offering probably not until market conditions improve.
Kraken has pursued a relatively targeted but increasingly strategic 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 U.S.-based retail futures platform and CFTC-registered FCM, marking the largest-ever deal between traditional finance and crypto and giving Kraken a direct foothold in U.S.
derivatives markets and a large base of futures traders. 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 U.S.
clients under Commodity Futures Trading Commission oversight. Payward has been building out its derivatives business globally, acquiring a U.K. crypto futures platform in 2019 and launching an EU offering in 2025. With Bitnomial, it now adds a fully regulated U.S.
stack. The deal also expands Payward Services, the firm's B2B infrastructure arm, allowing banks, fintechs, and brokerages to access regulated U.S. 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. According to Sethi, 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible.'