Payward, the parent company of cryptocurrency exchange Kraken, has entered into an agreement to acquire digital asset derivatives platform Bitnomial for a total of $550 million in cash and stock, valuing the company at $20 billion. This strategic move enables Payward to gain control of a fully licensed US crypto derivatives stack, effectively streamlining its regulatory compliance and expansion efforts in the US market. Bitnomial, established over a decade ago, is the first crypto-native platform to secure all 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. This acquisition is expected to significantly accelerate Payward's US footprint and strengthen its position in the crypto derivatives market, where Kraken is already a major player.
The deal is part of a broader trend of consolidation in the crypto sector, with larger, well-capitalized firms seeking strategic acquisitions to enhance their capabilities and infrastructure. Kraken, a US-based cryptocurrency exchange, has been expanding its services beyond spot trading to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform. The acquisition of Bitnomial, with its crypto-native settlement, collateral, and 24/7 trading capabilities, aligns with Payward's strategy to focus on the underlying infrastructure that shapes the market. As the crypto industry experiences a phase of consolidation, Payward's move is seen as a pragmatic approach to filling strategic gaps and shoring up infrastructure.
The company 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, due to challenging market conditions, the IPO plans have been put on hold. Kraken has been pursuing a targeted M&A strategy, with the acquisition of NinjaTrader in 2025 being the most significant transaction, marking the largest-ever deal between traditional finance and crypto.
The combined platform resulting from the Bitnomial acquisition will integrate the regulated infrastructure of Bitnomial with Payward's global distribution and liquidity across brands, including Kraken and NinjaTrader, offering spot margin, perpetual futures, and options for US clients under the oversight of the Commodity Futures Trading Commission. The deal is expected to close in the first half of 2026, pending customary conditions and regulatory filings, and will expand Payward Services, allowing banks, fintechs, and brokerages to access regulated US derivatives through a single API integration.