Payward, the parent company of cryptocurrency exchange Kraken, has agreed to purchase digital asset derivatives platform Bitnomial for up to $550 million in a cash-and-stock deal, valuing the company at $20 billion. This acquisition provides Payward with a fully licensed US crypto derivatives stack, streamlining its expansion into regulated markets.
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 for a designated contract market, a derivatives clearing organization, and a futures commission merchant. The acquisition effectively bypasses years of regulatory development for Payward as it broadens its US footprint.
While Kraken lags behind platforms like OKX, Bybit, and Coinbase in spot trading volumes, it remains a significant player in the crypto derivatives market. Kraken is a US-based cryptocurrency exchange that allows users to buy, sell, and trade digital assets like bitcoin and ether using fiat or crypto. It has expanded into services such as derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail app. Payward Co-CEO Arjun Sethi noted that the shape of a market is determined by its clearing infrastructure, not its front end, highlighting Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities as core to the strategy.
The deal activity in the crypto sector has begun to pick up after a prolonged downturn, as firms seek to consolidate capabilities and enhance infrastructure following years of market volatility and regulatory scrutiny. Larger, better-capitalized players are increasingly targeting acquisitions that fill strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost.
At the same time, depressed valuations have created opportunities for buyers, while smaller startups facing funding constraints are more open to being acquired, 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 confidentially submitting a draft S-1 to the US Securities and Exchange Commission on November 19 last year. However, the firm has put its IPO plans on hold due to difficult market conditions, with sources indicating that the company is still considering an initial public offering but probably not until market conditions improve.
In recent years, Kraken has pursued a targeted but increasingly strategic M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The most significant transaction was its $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, marking the largest-ever deal between traditional finance and crypto and giving Kraken a direct foothold in US derivatives markets and a large base of futures traders. 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. Payward has been building out its derivatives business globally, acquiring a UK crypto futures platform in 2019 and launching an EU offering in 2025. With Bitnomial, it now adds a fully regulated US stack.
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, which covers 100% of Bitnomial's equity, is expected to close in the first half of 2026, pending customary conditions and regulatory filings.