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 move allows Payward to bypass years of regulatory development as it expands its US presence.
Bitnomial, founded over a decade ago, is the first crypto-native platform to secure the necessary licenses to operate a full-stack derivatives business in the US, including approvals for a designated contract market, derivatives clearing organization, and futures commission merchant. The acquisition enhances Kraken's position in the crypto derivatives market, where it is a significant player despite trailing behind platforms like OKX, Bybit, and Coinbase in spot trading volumes. Kraken has been broadening its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail application.
Payward Co-CEO Arjun Sethi emphasized the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities in determining the market's shape. The deal is part of a larger trend of consolidation in the crypto sector, with larger, better-capitalized companies targeting strategic acquisitions to fill gaps in areas like custody, derivatives, and compliance. 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 in November last year.
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, which has 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.