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 grants Payward control of a fully licensed US crypto derivatives stack, enabling the company to expand its presence in regulated markets. 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. This acquisition is expected to shortcut years of regulatory buildout for Payward as it grows its US footprint.
Kraken, a major player in the crypto derivatives market, trails platforms like OKX, Bybit, and Coinbase in spot trading volumes but has expanded into services such as derivatives, staking, and custody, positioning itself as a full-service trading platform. The deal activity in the crypto sector has begun 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.
Payward Co-CEO Arjun Sethi noted that Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities are core to the strategy, stating, 'The shape of a market is determined by its clearing infrastructure, not its front end.' Kraken has been scaling up ahead of its planned initial public offering (IPO), having confidentially submitted a draft S-1 to the US Securities and Exchange Commission on November 19 last year. However, the firm has put its IPO plans on hold due to difficult 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 combined platform will integrate Bitnomial's regulated infrastructure with Payward's global distribution and liquidity across brands, including Kraken and NinjaTrader, with initial offerings expected to include spot margin, perpetual futures, and options for US clients under Commodity Futures Trading Commission oversight.
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.'