Payward, the parent company of the crypto exchange Kraken, has announced a deal to acquire digital asset derivatives platform Bitnomial in a cash-and-stock transaction valued at up to $550 million. This acquisition values Bitnomial at approximately $20 billion, according to information shared exclusively with CoinDesk.
Established over ten years ago, Bitnomial is notable for being the first crypto-native entity to secure all necessary licenses for operating a comprehensive derivatives business in one jurisdiction. It holds approvals as a designated contract market, a derivatives clearing organization, and a futures commission merchant. This acquisition allows Payward to bypass extensive regulatory processes while expanding its presence in the U.S.
Arjun Sethi, Co-CEO of Payward, emphasized that “the shape of a market is determined by its clearing infrastructure, not its front end.” He highlighted Bitnomial’s crypto-native settlement capabilities, collateral management, and 24/7 trading as strategic assets. Amidst increasing M&A activity in the crypto sector following years of volatility and regulatory scrutiny, firms are strategically consolidating to fill gaps in custody, derivatives, or compliance rather than pursuing unchecked growth.
As Kraken prepares for its planned initial public offering (IPO), Payward announced on November 19 last year that it had confidentially submitted a draft S-1 to the U.S. Securities and Exchange Commission. However, CoinDesk reported recently that due to challenging market conditions, the IPO plans were put on hold, although an IPO might still be considered once conditions improve.
Kraken has been actively pursuing strategic mergers and acquisitions (M&A) to extend its reach beyond crypto trading into multi-asset and derivatives markets. Its most notable acquisition was in 2025 when it purchased NinjaTrader for $1.5 billion, marking the largest transaction between traditional finance and crypto sectors. This deal provided Kraken direct access to U.S. derivatives markets and a significant base of futures traders.
In recent years, Kraken has also completed smaller acquisitions such as BCM in 2023 and Small Exchange, aiming to enhance its derivatives and institutional capabilities.
Overall, Kraken’s strategic M&A activities are aimed at acquiring regulatory licenses, trading infrastructure, and user bases that will help transform it into a comprehensive multi-asset trading platform covering both crypto and traditional markets. The integration of Bitnomial’s regulated infrastructure with Payward’s global presence is expected to offer initial offerings such as spot margin, perpetual futures, and options for U.S. clients under the oversight of the Commodity Futures Trading Commission.
Payward has been expanding its derivatives operations globally, acquiring a crypto futures platform in the U.K. in 2019 and launching an EU offering in 2025. With Bitnomial, it now secures a fully regulated U.S. stack as well. The acquisition also strengthens Payward Services, enabling banks, fintechs, and brokerages to access regulated U.S. derivatives via single API integration.
The transaction covers 100% of Bitnomial’s equity and is anticipated to close in the first half of 2026, subject to customary conditions and regulatory approvals.