Quick Breakdown
- Kraken acquires CFTC-licensed Small Exchange for $100 million, gaining a DCM license.
- The deal enables direct U.S. derivatives trading under a regulated framework.
- Marks a major step in Kraken’s global network expansion across the U.S., U.K., and EU.
Kraken secures $100M deal to acquire small exchange
Crypto exchange Kraken has taken a major leap in its U.S. expansion strategy, acquiring Small Exchange, a Commodity Futures Trading Commission (CFTC)-regulated derivatives platform, for $100 million.
The October 16 deal, announced by Kraken, grants the exchange a Designated Contract Market (DCM) license through its purchase from IG Group, solidifying its foundation to offer fully regulated crypto and traditional derivatives in the U.S.
Building a regulated U.S. derivatives network
With this acquisition, Kraken can now list and clear derivatives directly in the U.S., eliminating reliance on offshore venues. The move integrates spot, margin, and futures trading into a unified system — a first for a major U.S.-based crypto platform.
“Kraken’s acquisition of a CFTC-regulated Designated Contract Market creates the foundation for a new generation of United States derivatives markets,” said Arjun Sethi, Kraken co-CEO, emphasizing that the platform will prioritize “scale, transparency, and efficiency.”
The new license also enables Kraken to manage clearing and risk internally, streamlining operations for institutional investors while paving the way for new U.S.-based derivatives products.
Expanding global infrastructure
Kraken’s U.S. derivatives entry follows a series of key global acquisitions. In 2019, the exchange bought Crypto Facilities, a U.K.-based derivatives firm regulated by the Financial Conduct Authority (FCA). Earlier in 2025, Kraken also acquired NinjaTrader, providing American users access to CME-listed cryptocurrency futures through an integrated interface.
These moves collectively establish a multi-regional trading network spanning the U.K., European Union, and the United States, allowing Kraken to manage collateral and exposure in real time across markets. Notably, Kraken launched a new regulated cryptocurrency derivatives feature in July, opening up futures trading to its U.S. customers for the first time.
BOOM. Today, we launched Kraken Derivatives US, a CFTC-regulated crypto derivatives platform integrated directly into Kraken Pro.
This is a significant step forward in building unified, high-performance markets in the United States. Clients in Vermont, West Virginia, North…
— Arjun (Octariun) Sethi (@arjunsethi) July 16, 2025
Founded in 2011, Kraken now serves over 15 million users globally and supports 450+ assets, including both digital and traditional instruments. The exchange said its latest acquisition aligns with its goal of “building better market structure” rather than chasing short-term hype.
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