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 firm at $20 billion, according to a press release shared with CoinDesk. Bitnomial, founded over a decade ago, is notable for being the first crypto-native platform to secure all necessary licenses to operate a full-stack derivatives business in the US. These licenses include approvals for a designated contract market, a derivatives clearing organization, and a futures commission merchant.
The acquisition effectively streamlines Payward's regulatory compliance in the US market, bypassing years of regulatory development. Kraken, while trailing behind platforms like OKX, Bybit, and Coinbase in spot trading volumes, maintains a significant presence in the crypto derivatives market.
The exchange allows users to buy, sell, and trade digital assets such as bitcoin and ether using either fiat or crypto, and has expanded its services to include derivatives, staking, and custody. According to Payward Co-CEO Arjun Sethi, the strategic importance of Bitnomial lies in its crypto-native settlement, collateral, and 24/7 trading capabilities, which are core to Payward's strategy.
The crypto sector has seen a resurgence in deal activity following a prolonged downturn, with firms focusing on consolidating capabilities and reinforcing infrastructure in response to market volatility and regulatory scrutiny. Larger, well-capitalized players are increasingly pursuing acquisitions that address strategic gaps such as custody, derivatives, or compliance, rather than prioritizing growth at any cost. The depressed valuations in the sector have created opportunities for buyers, while smaller startups facing funding constraints are more open to acquisition, setting the stage for a more pragmatic phase of industry consolidation.
Kraken has been scaling up in anticipation of its planned initial public offering (IPO), with Payward having confidentially submitted a draft S-1 to the US Securities and Exchange Commission in November last year. However, the firm has reportedly put its IPO plans on hold due to challenging market conditions, although it is still considering an initial public offering once market conditions improve.
In recent years, Kraken has pursued a targeted and increasingly strategic M&A strategy aimed at expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The acquisition of Bitnomial follows significant transactions such as the $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, which marked the largest-ever deal between traditional finance and crypto. This acquisition gave Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to that, Kraken executed smaller acquisitions aimed at building out its 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, with initial offerings expected to include spot margin, perpetual futures, and options for US clients under the oversight of the Commodity Futures Trading Commission.
Payward has been expanding its derivatives business globally, having acquired a UK crypto futures platform in 2019 and launched an EU offering in 2025. With the acquisition of Bitnomial, it now adds a fully regulated US stack to its portfolio.
The deal also expands Payward Services, the firm's B2B infrastructure arm, allowing banks, fintechs, and brokerages to access regulated US 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. "We are not acquiring a company.
We are adding the infrastructure layer that makes the next generation of US derivatives possible," Sethi commented.