Kraken Acquires Bitnomial: $550m Deal for Derivatives Exchange
Kraken's parent company, Payward, is acquiring derivatives exchange Bitnomial for $550 million, expanding its offerings in the digital assets space. Kraken derivatives exchange Bitnomial deal values Payward's equity at $20 billion.
Introduction to Kraken's Acquisition Strategy
Kraken is pushing into traditional finance, allowing users to trade stocks, bonds, and other assets. The acquisition of Bitnomial, a fully CFTC-licensed derivatives company, will enable Kraken to offer round-the-clock trading of other assets.
Benefits of the Acquisition for Kraken Users
Enhanced Trading Capabilities
Bitnomial's spot margin, perpetuals, and options services will be added for US clients. Arjun Sethi, co-CEO of Payward and Kraken, stated that the US has had no clearing infrastructure built for digital assets, and Bitnomial spent a decade building it.
Key Features of the Bitnomial Acquisition
- Crypto settlement and collateral
- Continuous 24/7 markets
- Capabilities that cannot be retrofitted onto legacy systems
Luke Hoersten, founder and CEO of Bitnomial, said that joining Payward means they can now build the future of derivatives at the scale it deserves.
Key Takeaways
- Kraken acquires Bitnomial for $550 million, expanding its derivatives exchange offerings
- Deal values Payward's equity at $20 billion
- Acquisition enables Kraken to offer round-the-clock trading of other assets
- Bitnomial's services will be added for US clients, including spot margin, perpetuals, and options
Frequently Asked Questions
What is the significance of the Bitnomial acquisition for Kraken?
The acquisition expands Kraken's derivatives exchange offerings and enables the company to offer round-the-clock trading of other assets.
How will the acquisition impact Kraken users?
The acquisition will provide Kraken users with enhanced trading capabilities, including spot margin, perpetuals, and options services.
