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 move values the firm at $20 billion and gives Payward a significant foothold in the U.S.
derivatives market. Bitnomial, founded over a decade ago, is notable for being 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 seeks to expand its presence in the U.S. market.
Kraken, while trailing behind competitors like OKX, Bybit, and Coinbase in spot trading volumes, remains a major player in the crypto derivatives market. The exchange allows users to buy, sell, and trade digital assets like bitcoin and ether, and has expanded its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform.
According to Payward Co-CEO Arjun Sethi, the acquisition of Bitnomial is core to the company's strategy, highlighting Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities as key assets. The deal activity in the crypto sector has seen an uptick after a prolonged downturn, with firms now focusing on consolidating capabilities and reinforcing infrastructure following years of market volatility and regulatory scrutiny. Larger players are targeting strategic acquisitions to fill gaps in areas like custody, derivatives, or compliance, rather than pursuing growth at all costs.
Meanwhile, depressed valuations have created opportunities for buyers, and smaller startups facing funding constraints are more open to acquisitions, 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 in November last year.
However, due to difficult market conditions, the firm has put its IPO plans on hold, according to sources, with considerations for an initial public offering likely to resume when market conditions improve. In recent years, Kraken has pursued a targeted M&A strategy aimed at expanding beyond pure crypto trading into multi-asset and derivatives infrastructure.
The acquisition of Bitnomial follows significant transactions like the $1.5 billion acquisition of NinjaTrader in 2025, a U.S.-based retail futures platform, marking the largest-ever deal between traditional finance and crypto. This gave Kraken a direct foothold in U.S. derivatives markets and a large base of futures traders. Prior acquisitions, including BCM in 2023 and the Small Exchange, were aimed at building out derivatives and institutional capabilities.
Overall, Kraken's deal activity signals a clear strategy of using M&A to acquire regulatory licenses, trading infrastructure, and user bases that help it evolve into a broader, institutional-grade, multi-asset trading platform spanning both crypto and traditional markets. 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 the oversight of the Commodity Futures Trading Commission. Payward has been building out its derivatives business globally, with the acquisition of a U.K. crypto futures platform in 2019 and the launch of an EU offering in 2025.
The deal with Bitnomial now adds a fully regulated U.S. stack to its operations. The transaction, covering 100% of Bitnomial's equity, is expected to close in the first half of 2026, pending customary conditions and regulatory filings. "We are not acquiring a company, we are adding the infrastructure layer that makes the next generation of U.S.
derivatives possible," Sethi commented.