Kraken's parent company Payward has acquired CFTC-licensed derivatives platform Bitnomial in a $550 million cash-and-stock deal, marking a major strategic move toward launching fully regulated crypto derivatives in the United States. The acquisition, valuing Bitnomial at over $20 billion, positions Kraken to offer spot margin, perpetuals, and options under U.S. regulatory oversight as the exchange advances toward its long-awaited initial public offering.

Kraken to add CFTC-licensed trading platform

Bitnomial is the first fully licensed derivatives company dealing with crypto assets. The US Commodities Futures Trading Commission approved the licensing in 2020, allowing Bitnomial to gain experience with regulated crypto trading. 

‘The shape of a market is determined by its clearing infrastructure, not its front end. Settlement mechanics, margin models, and contract structures define what products can exist and who can access them. The US has had no clearing infrastructure built for digital assets,’ said Arjun Sethi, Co-CEO of Payward and Kraken.

Bitnomial is the first crypto-native market in the USA with all three CFTC-issued licenses. This allows Bitnomial to operate a full-stack US-based business for crypto derivatives and other assets. Kraken will bring an additional global client base, liquidity, and service distribution across the exchange’s own interface and NinjaTrader.

The chief advantage of Bitnomial is the years-long preparation to build a regulated foundation. In recent years, Bitnomial has been seeking a partnership with either Kraken or Coinbase to expand its reach. Currently, the platform can offer services as an exchange, clearinghouse, and brokerage, the first company in the US to offer a full investment stack with digital assets in mind. 

Bitnomial to drive mainstream crypto adoption

Bitnomial arrives at a time when crypto services have shifted from native traders to targeting traditional investors. 

The current crypto settlement, collateral services, and 24/7 markets are unique to crypto and cannot be retrofitted into legacy systems, Kraken commented. As a result, Bitnomial is the only source of native crypto infrastructure that is fully approved and regulated. 

Kraken will be able to offer spot margin, perpetual futures, and options for US clients. With the acquisition, Kraken will compete on the perpetual futures market, which until now has been either regulated for global traders or decentralized and permissionless.

Payward Services will leverage Bitnomial’s capabilities to offer a B2B channel for fintechs, banks, brokerages, and payment providers. Business clients will be able to offer derivative products to their end users through a simple integration, opening a door to safer crypto trading for traditional investors. 

Payward Services will offer API access to crypto trading, tokenized equities, staking, and fiat ramps, and will also add regulated US derivatives.

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