Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a cash and stock transaction valued at up to $550 million. This deal values the company at $20 billion and gives Payward a significant foothold in the US crypto derivatives market.
Bitnomial is the first crypto-native platform to obtain all three 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 effectively bypasses years of regulatory development for Payward as it expands its presence in the US.
Kraken, while trailing behind other platforms in spot trading volumes, remains a major player in the crypto derivatives market. The company has expanded its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond basic retail services. According to Payward Co-CEO Arjun Sethi, the acquisition of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities is central to the company's strategy, as 'the shape of a market is determined by its clearing infrastructure, not its front end.' The deal activity in the crypto sector has picked up after a prolonged downturn, with firms seeking to consolidate capabilities and strengthen infrastructure following years of market volatility and regulatory scrutiny.
Larger, well-capitalized players are increasingly targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, or compliance, rather than pursuing growth at any cost. The acquisition of Bitnomial is part of Kraken's broader strategy to scale up ahead of its planned initial public offering. Payward had confidentially submitted a draft S-1 to the US Securities and Exchange Commission in November last year but has reportedly put its IPO plans on hold due to difficult market conditions. Kraken has pursued a targeted M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure.
The company's most significant transaction was its $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM. 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 US clients under Commodity Futures Trading Commission oversight. The deal also expands Payward Services, 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.