Payward, the parent company of cryptocurrency exchange Kraken, has entered into an agreement to acquire Bitnomial, a digital asset derivatives platform, for up to $550 million in a cash-and-stock transaction, valuing the company at $20 billion. This move is expected to significantly enhance Payward's presence in the US derivatives market, as Bitnomial is the first crypto-native platform to secure all necessary licenses to operate a full-stack derivatives business in the US. The acquisition will effectively expedite Payward's regulatory expansion in the US, bypassing years of regulatory buildup. Kraken, while trailing behind platforms like OKX, Bybit, and Coinbase in terms of spot trading volumes, remains a significant player in the crypto derivatives market.
The company has diversified 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, with its crypto-native settlement, collateral, and 24/7 trading capabilities, is core to the company's strategy, emphasizing that the shape of a market is determined by its clearing infrastructure, not its front end.
The deal activity in the crypto sector has begun to pick up following a prolonged downturn, with larger, better-capitalized firms looking to consolidate capabilities and strengthen infrastructure. This acquisition is part of Kraken's strategic expansion ahead of its planned initial public offering (IPO), which was reportedly put on hold due to challenging market conditions.
Kraken has been pursuing a targeted M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The acquisition of Bitnomial marks a significant step in this strategy, integrating its regulated infrastructure with Payward's global distribution and liquidity. The combined platform is expected to offer spot margin, perpetual futures, and options for US clients under the oversight of the Commodity Futures Trading Commission.
This deal not only expands Payward's derivatives business globally but also enhances its B2B infrastructure arm, 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 anticipated to close in the first half of 2026, pending customary conditions and regulatory filings.
As stated by Sethi, the acquisition is not merely about buying a company but about adding the infrastructure necessary for the next generation of US derivatives.