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Kraken acquired Small Exchange, a CFTC-regulated derivatives market, for $100 million.
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The deal gives Kraken a foundation to launch a fully U.S.-based derivatives platform.
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The move follows its earlier NinjaTrader acquisition and deepens its TradFi integration.
A Strategic Expansion in the U.S.
Kraken has purchased Small Exchange from IG Group for $100 million, giving it a regulated platform to expand its derivatives business in the United States. The acquisition makes Kraken a CFTC-compliant Designated Contract Market operator, allowing it to connect spot, margin, and futures trading under one regulated system.
“This step connects spot, futures, and margin products inside a single regulated liquidity system,” said Kraken co-CEO Arjun Sethi.
Building on Prior Acquisitions
The move follows Kraken’s earlier $1.5 billion acquisition of NinjaTrader, marking its second major push into the futures market this year. Together, the two acquisitions position Kraken as a serious competitor to CME and other traditional exchanges.
Institutional Demand Driving Growth
The U.S. crypto derivatives market has grown rapidly, with CME reporting a 136% year-over-year increase in average daily trading volume to 190,000 contracts. Kraken’s expansion gives institutional traders new options within a trusted regulatory framework.
