Payward, the parent company of cryptocurrency exchange Kraken, has entered into an agreement to acquire digital asset derivatives platform Bitnomial for up to $550 million in a cash-and-stock deal, valuing the company at $20 billion. This acquisition provides Payward with a fully licensed US crypto derivatives stack, enabling it to shortcut years of regulatory development as it expands its US footprint. Bitnomial, founded over a decade ago, is the first crypto-native platform to secure the 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. 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 such as bitcoin and ether using fiat or crypto and has expanded its services to include derivatives, staking, and custody. According to Payward Co-CEO Arjun Sethi, 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 deal activity in the crypto sector has begun 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. The acquisition of Bitnomial is part of Kraken's strategy to scale up ahead of its planned initial public offering (IPO), which was confidentially submitted to the US Securities and Exchange Commission in November last year.
However, due to difficult market conditions, the company has put its IPO plans on hold. Kraken has been pursuing a targeted M&A strategy, focusing 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. 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. The deal also 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. 'We are not acquiring a company.
We are adding the infrastructure layer that makes the next generation of US derivatives possible,' Sethi said.