Kraken's parent company, Payward, 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, according to a press release. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure the 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.
The acquisition enables Payward to shortcut years of regulatory buildout as it expands its US footprint. Kraken, a major US-based cryptocurrency exchange, allows users to buy, sell, and trade digital assets like bitcoin and ether using fiat or crypto. The company has expanded into services such as derivatives, staking, and custody, positioning itself as a full-service trading platform. Payward Co-CEO Arjun Sethi highlighted Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities as core to the strategy, stating that 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 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, having confidentially submitted a draft S-1 to the US Securities and Exchange Commission. However, the firm has 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, 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 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.