The parent company of cryptocurrency exchange Kraken has agreed to acquire digital asset derivatives platform Bitnomial for up to $550 million, Payward said in a press release shared exclusively with CoinDesk, in a cash-and-stock deal that values the company at $20 billion.
Founded over a decade ago, Bitnomial is the first cryptocurrency-native platform to obtain all three licenses required to operate a full-stack derivatives business in the United States, having received approval to operate a designated contract market, a derivatives clearing organization, and a futures commission merchant. The acquisition effectively shortens Infinite Loop Development’s years of regulatory development as it expands its operations in the United States.
Although Kraken lags behind platforms such as OKX, Bybit, and Coinbase (COIN) in terms of spot trading volume, it remains a major player in the cryptocurrency derivatives market.
Kraken is a U.S.-based cryptocurrency exchange where users can buy, sell, and trade digital assets such as Bitcoin and Ethereum (ETH) using fiat or cryptocurrency. It has expanded into services such as derivatives, staking and custody, positioning itself as a more full-service trading platform beyond basic retail applications.
“The shape of the market is determined by its clearing infrastructure, not the front end,” said Payward co-CEO Arjun Sethi, who pointed to Bitnomial’s crypto-native settlement, collateral and 24/7 trading capabilities as core to the strategy.
Trading activity in the cryptocurrency industry has begun to pick up after a long slump, as companies look to consolidate capabilities and shore up infrastructure after years of market volatility and regulatory scrutiny.
Larger, better capitalized companies are increasingly targeting acquisitions that fill strategic gaps such as custody, derivatives or compliance, rather than pursuing growth at all costs. At the same time, depressed valuations create opportunities for buyers, and smaller startups facing funding constraints are more willing to be acquired, setting the stage for a more pragmatic phase of industry consolidation.
Expand scale
Kraken has been planning to expand ahead of an initial public offering (IPO). Payward said it confidentially filed a draft S-1 with the SEC on November 19 last year.
However, CoinDesk reported last month that the company had shelved its IPO plans due to difficult market conditions. The company is still considering an initial public offering but may not proceed until market conditions improve, according to sources.
In recent years, Kraken has pursued a relatively targeted but more strategic M&A strategy focused on expanding from pure cryptocurrency trading into multi-asset and derivatives infrastructure.
The most significant deal was the $1.5 billion acquisition of NinjaTrader in 2025, a US-based retail futures platform and CFTC-registered FCM, marking the largest-ever transaction between traditional finance and cryptocurrencies and giving Kraken a direct foothold in the US derivatives market and a large number of futures traders.
Prior to this, Kraken executed smaller acquisitions such as BCM in 2023, as well as other platform or exchange acquisitions, including the later acquisition of Small Exchange, aiming to strengthen its derivatives and institutional capabilities.
Overall, Kraken’s trading activity signals a clear strategy. Gaining regulatory licenses, trading infrastructure and user base through mergers and acquisitions has helped it grow into a broader, institutional-grade, multi-asset trading platform covering both cryptocurrency and traditional markets.
Derivatives business
The combined platform will integrate Bitnomial’s regulated infrastructure with Payward’s global distribution and liquidity across brands including Kraken and NinjaTrader. The initial offering is expected to include spot margin, perpetual futures and options for U.S. customers under the supervision of the Commodity Futures Trading Commission.
Payward has been expanding its derivatives business globally, acquiring a UK cryptocurrency futures platform in 2019 and launching an EU product in 2025. With Bitnomial, it now adds a fully regulated US stack.
The deal also expands Payward Services, the company’s B2B infrastructure arm, allowing banks, fintechs and brokerage firms to access regulated U.S. derivatives through a single API integration.
The transaction, which covers 100% of Bitnomial’s equity interests, is expected to close in the first half of 2026, subject to customary conditions and regulatory filings.
“We are not acquiring a company. We are adding an infrastructure layer to make the next generation of U.S. derivatives possible,” Sethi said in emailed comments.
Read more: Cryptocurrency exchange Kraken hit by blackmail but says there was no breach and no customer funds were at risk
Update (April 17, 12:40 PM UTC): Updated the story with a quote from the CEO in the final paragraph.