Kraken Parent Payward Acquires Crypto Derivatives Exchange Bitnomial for $550 Million

Payward is the parent company of cryptocurrency exchange Kraken. Hong Kong-based Reap Technologies provides infrastructure for stablecoin-powered corporate cross-border payments, card issuance and settlement. The acquisition connects Payward Services with traditional payment networks, digital assets and real-time on-chain settlement. It is also Payward’s first acquisition of an infrastructure provider in Asia, advancing its expansion from trading services into global corporate payments.

Payward announced the transaction on May 7, 2026, and completed the acquisition on July 1. The consideration is worth up to $600 million and will be paid in cash and Payward shares, with the stock valued based on a $20 billion equity valuation. Reap will retain its brand, management team and independent operating model. Its card-issuing and cross-border payment capabilities will be integrated into Payward Services to support expansion across Asia-Pacific, the Americas and Europe.

Payward, the parent company of cryptocurrency exchange Kraken, has long relied heavily on spot trading volumes and crypto price volatility for its core revenue. As the market cooled in early 2026, the company expanded into futures, tokenized assets and payments through acquisitions including NinjaTrader and Breakout, seeking to reduce its exposure to market cycles.

Payward reported adjusted first-quarter revenue of $507 million on May 18, 2026, up 3% year on year. Adjusted EBITDA was $18 million, while platform trading volume reached $357 billion. Bitcoin fell 22% and industry-wide spot trading volume dropped 38% during the period, but the average daily number of revenue-generating futures trades rose 51% year on year, offsetting weakness in the spot business.

Payward, the parent of cryptocurrency exchange Kraken, which was founded in 2011, is expanding in derivatives, payments and stablecoins to reduce its reliance on spot trading. Its fundraising valuation and operational streamlining will directly affect the pricing of a future U.S. IPO and investor confidence.

Payward was reported on May 8, 2026, to be in talks for a new funding round at a $20 billion valuation. On May 14, reports emerged that it was cutting about 150 jobs, equivalent to 5% of its workforce of nearly 3,000. The company is also pursuing acquisitions, buying Bitnomial for $550 million and Reap for $600 million as it broadens its business ahead of a listing.

Payward-owned Kraken is a major global cryptocurrency exchange, while Franklin Templeton is a traditional asset manager. Their partnership centers on bringing fund yields, collateral and trading services onto blockchains, allowing institutional investors to use tokenized assets within a compliant framework. The deal also reflects Wall Street’s accelerating push into asset tokenization.

As of July 20, 2026, Payward and Franklin Templeton had announced plans to jointly develop tokenized yield products, blockchain-based funds and institutional crypto market services. Kraken also plans to accept the BENJI tokenized money market fund as collateral. The companies have not disclosed the value of the partnership, a specific launch date or expected yields.