Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Bitnomial, a digital asset derivatives platform, in a cash-and-stock deal valued at up to $550 million. This transaction values the company at $20 billion, according to a press release shared exclusively with CoinDesk. Founded over a decade ago, Bitnomial is the first crypto-native platform to obtain 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 bypasses years of regulatory development for Payward as it expands its presence in the U.S. market. Kraken, while trailing behind other platforms such as OKX, Bybit, and Coinbase 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 comprehensive trading platform beyond a basic retail application. According to Payward Co-CEO Arjun Sethi, the core strategy behind the acquisition lies in Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities. The deal activity in the crypto sector has started to pick up after a prolonged downturn, with firms seeking to consolidate capabilities and strengthen infrastructure following years of market volatility and regulatory scrutiny.

Larger, well-capitalized players are increasingly targeting strategic acquisitions that fill gaps in areas 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 having confidentially submitted 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, with sources indicating that the company is still considering an initial public offering but likely not until market conditions improve. In recent years, Kraken has pursued a targeted yet 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 Kraven 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, covering 100% of Bitnomial's equity, is expected to close in the first half of 2026, pending customary conditions and regulatory filings.