Kraken expanded its U.S. presence with the $100 million acquisition of Small Exchange, a derivatives platform licensed by the Commodity Futures Trading Commission.
summary
- Kraken acquires small CFTC-approved exchange for $100 million to expand in the US
- The agreement will allow Kraken to offer regulated crypto derivatives domestically.
- It builds on previous acquisitions such as NinjaTrader and Crypto Facilities.
The deal marks a key milestone in Kraken’s plans to create a fully regulated trading network that combines cryptocurrencies and traditional derivatives within a single US-based framework.
According to Kraken’s Oct. 16 press release, the exchange’s acquisition from IG Group will give Kraken a designated contract market license and pave the way for a regulated U.S. derivatives suite.
Strengthens Kraken’s access to the US market
Thanks to this acquisition, Kraken will now be able to list derivatives directly on the U.S. market. This step connects spot, futures, and margin trading into one regulated system, reducing the need for fragmented offshore exchanges.
“Kraken’s acquisition of the CFTC-regulated designated contract market lays the foundation for a new generation of U.S. derivatives markets, designed for scale, transparency and efficiency.”
— Kraken Co-CEO Arjun Sethi
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This addition gives Kraken a framework to clear and manage risk within one structure, increasing efficiency for institutional traders. The exchange will also be able to develop new U.S.-based derivative products without relying on external partners.
Expanding global infrastructure
Kraken’s acquisition of Small Exchange follows several major steps in its global expansion. In 2019, it acquired UK-based Crypto Facilities, which operates under the Financial Conduct Authority. Earlier this year, Kraken acquired NinjaTrader, allowing users in the U.S. to access CME-listed crypto futures through a unified interface.
Together, these exchanges form part of Kraken’s broader network expansion spanning the UK, the European Union, and now the US. The exchange says the system allows it to move collateral in real-time and manage exposures across the region more efficiently.
Founded in 2011, Kraken currently serves more than 15 million users worldwide and supports trading in more than 450 assets, including digital and traditional markets. The company says its latest move is about “building a better market structure” and not short-term marketing or storytelling.
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