Payward Acquires Bitnomial to Enhance Cryptocurrency Market Presence
In a strategic move to enhance its presence in the cryptocurrency market, Payward has successfully acquired Bitnomial, paving the way for Kraken to offer regulated crypto derivatives in the United States. This development was announced in a company statement on Friday, highlighting the acquisition’s significance in granting Payward a suite of licenses from the Commodity Futures Trading Commission (CFTC).
Licenses and Regulatory Framework
These licenses encompass essential functions including a Futures Commission Merchant, a Designated Contract Market, and a Derivatives Clearing Organization, thereby enabling a comprehensive framework for trading, clearing, and brokerage services.
Future Plans and Product Rollout
Arjun Sethi, co-CEO of both Payward and Kraken, indicated that the initial rollout will focus on spot margin trading, with plans to expand to perpetual contracts and options in the near future. He remarked that the underlying technology and services from this acquisition will facilitate the launch of additional products down the line.
Bitnomial’s Background and Operations
Located in Chicago, Bitnomial has spent over ten years acquiring the necessary CFTC approvals to establish itself as a fully-fledged derivatives operation, a feat that no other cryptocurrency-focused company in the U.S. has achieved concurrently. Following the closure of the acquisition, Bitnomial will continue its operations under the Payward umbrella while maintaining its regulatory framework and existing third-party services. Furthermore, there are intentions to bolster the exchange’s workforce as development progresses.
Integration and Access for Financial Institutions
The integration plans include linking Bitnomial’s infrastructure with Kraken, NinjaTrader, and Payward’s business-to-business model. This will streamline access for banks, brokerages, and payment processors to regulated U.S. crypto derivatives via a unified API.
Financial Overview and Future Prospects
Upon announcing the acquisition, Payward indicated that the total deal could amount to $550 million in cash and stock, attributing a valuation of $20 billion to the company, although the specific terms of the agreement were not disclosed upon completion. Payward’s financial data revealed that in 2025, it generated revenues of $2.2 billion, handled approximately $2 trillion in transactions, and secured over $48 billion in customer assets at the end of the year.
Global Operations and Future Plans
Globally, Payward has already established regulated derivatives operations in the UK since acquiring another firm in 2019 and launched EU-compliant products in 2025, positioning itself for a robust entry into the U.S. market with its newly acquired licensed structure. This acquisition follows a significant $200 million investment from Deutsche Börse Group earlier in the month and comes as Payward prepares for a potential public offering, having confidentially filed a draft S-1 with the U.S. Securities and Exchange Commission in November.
