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 shortcut years of regulatory development as it expands its US footprint. 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.
The acquisition is part of Payward's strategy to expand its US presence and consolidate its position in the crypto derivatives market. Kraken, a major player in the crypto derivatives market, trails platforms like OKX, Bybit, and Coinbase in spot trading volumes but has expanded its services to include derivatives, staking, and custody, positioning itself as a full-service trading platform. According to Payward Co-CEO Arjun Sethi, the acquisition of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities is core to the company's strategy, as the shape of a market is determined by its clearing infrastructure.
The deal activity in the crypto sector has picked up after a prolonged downturn, with firms seeking to consolidate their capabilities and shore up infrastructure following years of market volatility and regulatory scrutiny. Larger, better-capitalized players are targeting acquisitions that fill strategic gaps, such as custody, derivatives, or compliance, rather than pursuing growth at any cost.
The acquisition of Bitnomial is part of Kraken's planned initial public offering (IPO) and its strategic 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, and is expected to offer spot margin, perpetual futures, and options for US clients under Commodity Futures Trading Commission oversight. 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.