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 gives Payward a fully licensed US crypto derivatives stack, enabling it to shortcut years of regulatory buildout as it expands its US footprint. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure 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, particularly in the crypto derivatives market, where Kraken is a major player. 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, and has expanded into services such as derivatives, staking, and custody.
According to Payward Co-CEO Arjun Sethi, the acquisition is core 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 been increasing after a prolonged downturn, with firms looking to consolidate capabilities and shore up infrastructure following years of market volatility and regulatory scrutiny. Larger players are targeting acquisitions that fill strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost. Kraken has been scaling up ahead of its planned initial public offering (IPO), having confidentially submitted 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.
In recent years, Kraken has pursued a targeted M&A strategy focused on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The acquisition of Bitnomial is the latest in a series of strategic deals, including the $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, 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.
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.