Payward, the parent company of cryptocurrency exchange Kraken, has entered into an agreement to acquire digital asset derivatives platform Bitnomial for a sum of up to $550 million in a cash-and-stock deal, valuing the company at $20 billion. This move, as announced in a press release, marks a significant step for Payward as it seeks to bolster its presence in the US crypto derivatives market.
Bitnomial, established over a decade ago, holds the distinction of being the first crypto-native platform to secure all necessary licenses for operating a full-stack derivatives business in the US, including approvals for a designated contract market, a derivatives clearing organization, and a futures commission merchant. This acquisition effectively streamlines Payward's regulatory compliance process, bypassing years of buildout as it expands its footprint in the US. Kraken, while trailing behind platforms such as OKX, Bybit, and Coinbase in terms of spot trading volumes, maintains a significant presence in the crypto derivatives market. The exchange allows users to buy, sell, and trade digital assets, including bitcoin and ether, using either fiat or crypto, and has diversified its services to include derivatives, staking, and custody, positioning itself as a comprehensive trading platform.
According to Payward Co-CEO Arjun Sethi, the acquisition of Bitnomial, with its crypto-native settlement, collateral, and 24/7 trading capabilities, is central to the company's strategy. The deal comes at a time when the crypto sector is witnessing an uptick in consolidation activities, with larger, well-capitalized firms seeking to acquire strategic assets such as custody, derivatives, or compliance capabilities, rather than pursuing growth at all costs. The depressed valuations in the market have created an environment conducive to acquisitions, with smaller startups facing funding constraints being more open to being acquired. This sets the stage for a more pragmatic phase of industry consolidation.
Kraken has been gearing up for 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 company has reportedly put its IPO plans on hold due to challenging market conditions, although it is still considering going public once market conditions improve.
In recent years, Kraken has adopted a targeted M&A strategy aimed at expanding beyond pure crypto trading into multi-asset and derivatives infrastructure. The acquisition of Bitnomial follows its $1.5 billion purchase of NinjaTrader in 2025, a US-based retail futures platform, which marked the largest-ever deal between traditional finance and crypto, giving Kraken a direct foothold in US derivatives markets and a large base of futures traders. Prior to this, Kraken executed several smaller acquisitions, including BCM in 2023 and the Small Exchange, aimed at bolstering its derivatives and institutional capabilities.
Overall, Kraken's deal activity underscores a clear strategy of using M&A to acquire regulatory licenses, trading infrastructure, and user bases that facilitate its evolution into a broader, institutional-grade, multi-asset trading platform spanning both crypto and traditional markets. The combined platform resulting from the Bitnomial acquisition will integrate the regulated infrastructure of Bitnomial 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 the oversight of the Commodity Futures Trading Commission. Payward has been building out its derivatives business globally, having acquired a UK crypto futures platform in 2019 and launched an EU offering in 2025, and with Bitnomial, it now adds a fully regulated US stack to its portfolio.
The deal also expands Payward Services, the firm's B2B infrastructure arm, enabling 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.
'We are not acquiring a company. We are adding the infrastructure layer that makes the next generation of US derivatives possible,' Sethi commented.