Payward Acquires Bitnomial, Gaining Compliance for US Cryptocurrency Derivatives

Payward's acquisition of Bitnomial marks a significant milestone for the cryptocurrency derivatives market in the United States. With this acquisition, Payward has secured a comprehensive licensing system from the Commodity Futures Trading Commission (CFTC), which includes futures commission merchant (FCM), designated contract market (DCM), and derivatives clearing organization (DCO) licenses.

The CFTC's licensing will enable Payward to offer a range of cryptocurrency derivatives services, including spot margin products, perpetual contracts, and options trading. According to Arjun Sethi, co-CEO of Payward and Kraken, the company plans to prioritize launching spot margin products on the Kraken platform.

Bitnomial, based in Chicago, will retain its original licenses and business structure after the acquisition and serve as the core vehicle for Payward's U.S. derivatives strategy. The transaction also provides new access channels to the U.S. cryptocurrency derivatives market for partners such as banks, brokerages, and payment institutions.