Payward, the parent company of crypto exchange Kraken, has agreed to acquire digital asset derivatives platform Bitnomial in a cash-and-stock deal valued at up to $550 million. This acquisition values the firm at $20 billion and provides Payward with a fully licensed US crypto derivatives stack, enabling it to accelerate its expansion into regulated markets.
Founded over a decade ago, Bitnomial is the first crypto-native platform to secure all three licenses required 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 effectively bypasses years of regulatory buildout for Payward as it expands its US footprint. Kraken, a major player in the crypto derivatives market, trails platforms like OKX, Bybit, and Coinbase in spot trading volumes but has expanded into services such as derivatives, staking, and custody, positioning itself as a more comprehensive trading platform. Payward Co-CEO Arjun Sethi emphasized the importance of Bitnomial's crypto-native settlement, collateral, and 24/7 trading capabilities in determining the shape of a market.
The deal activity in the crypto sector has begun to pick up after a prolonged downturn, as firms look to consolidate capabilities and shore up infrastructure following years of market volatility and regulatory scrutiny. Larger players are increasingly 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 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 combined platform will integrate Bitnomial's regulated infrastructure with Payward's global distribution and liquidity across brands, including Kraken and NinjaTrader, with initial offerings 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.