Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Bitnomial, a digital asset derivatives platform, in a deal valued at up to $550 million. The transaction, which combines cash and stock, values Bitnomial at $20 billion. Bitnomial is the first crypto-native platform to secure all 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 effectively streamlines Payward's regulatory expansion in the US, bypassing years of regulatory development. Kraken, while trailing behind platforms like OKX, Bybit, and Coinbase in spot trading volumes, remains a significant player in the crypto derivatives market. The exchange 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, positioning itself as a comprehensive trading platform beyond basic retail services. According to Payward Co-CEO Arjun Sethi, "The shape of a market is determined by its clearing infrastructure, not its front end," highlighting Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities as core to the strategy.
The deal activity in the crypto sector has started to increase 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. At the same time, 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 in November last year.
However, the firm has put its IPO plans on hold due to difficult market conditions, considering an initial public offering when 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 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 and giving Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to that, Kraken executed smaller acquisitions 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.