Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a cash-and-stock deal worth up to $550 million. This transaction values Bitnomial 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 enables Payward to bypass years of regulatory development 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 been expanding its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail app.
According to Payward Co-CEO Arjun Sethi, the acquisition of Bitnomial is core to the company's strategy, highlighting the platform's crypto-native settlement, collateral, and 24/7 trading capabilities. The deal activity in the crypto sector has been increasing after a prolonged downturn, with firms focusing on consolidating capabilities and strengthening infrastructure following years of market volatility and regulatory scrutiny.
Larger players are targeting strategic acquisitions to fill gaps in areas such as custody, derivatives, or compliance. The acquisition of Bitnomial is part of Kraken's broader strategy to expand beyond pure crypto trading into multi-asset and derivatives infrastructure. The company has been pursuing a targeted M&A strategy, with significant transactions including the $1.5 billion acquisition of NinjaTrader in 2025.
The combined platform will integrate Bitnomial's regulated infrastructure with Payward's global distribution and liquidity, offering spot margin, perpetual futures, and options for US clients under the oversight of the Commodity Futures Trading Commission. The deal is expected to close in the first half of 2026, pending customary conditions and regulatory filings. As stated by Sethi, the acquisition is not just about adding a company, but about adding the infrastructure layer that enables the next generation of US derivatives.