Kraken's parent company, Payward, has agreed to purchase digital asset derivatives platform Bitnomial in a cash-and-stock deal valued at up to $550 million, according to a press release. This transaction values Bitnomial at $20 billion. Founded over a decade ago, 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 US footprint. Although 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 its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform beyond a basic retail app. Payward Co-CEO Arjun Sethi noted that Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities are crucial to the company's strategy, stating that 'the shape of a market is determined by its clearing infrastructure, not its front end.' The crypto sector has seen increased deal activity after a prolonged downturn, with firms seeking to consolidate capabilities and strengthen infrastructure following years of market volatility and regulatory scrutiny.
Larger, well-capitalized players are targeting acquisitions that fill strategic gaps such as custody, derivatives, or compliance, rather than pursuing growth at any cost. Meanwhile, 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), 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, with sources indicating that the company is still considering an initial public offering but likely not until market conditions improve.
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 company's 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. This acquisition gave Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to that, Kraken executed smaller acquisitions such as BCM in 2023 and other platform or exchange purchases, aimed at building out its derivatives and institutional capabilities.
Overall, Kraken's deal activity signals a clear strategy of using M&A to acquire regulatory licenses, trading infrastructure, and user bases that help it evolve into a broader, institutional-grade, multi-asset trading platform spanning crypto and traditional markets. 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. 'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible,' Sethi said in emailed comments.