Kraken has expanded its regulatory footprint in the US with the $100 million acquisition of Small Exchange, a CFTC-regulated derivatives trading platform previously owned by IG Group.
The decision represents a crucial step in Kraken's bid to bring regulated cryptocurrency derivatives trading domestically and strengthen its presence on the world's largest capital market.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
Kraken has received a CFTC license to build a regulated US derivatives center
The acquisition gives Kraken ownership of the Designated Contract Market (DCM) license, enabling it to design and operate exchange derivatives directly under the US umbrella. Kraken says this structure will allow it to integrate spot, margin and futures products into a single regulated liquidity system, a first for its US clients.
“Kraken’s acquisition of the CFTC-regulated custom contracts market creates the foundation for a new generation of financial derivatives markets in the US,” said Arjun Sethi, co-CEO of Kraken.
He also added: “This move links spot, futures and margin products within a single regulated system, reducing fragmentation and bringing the kind of access and on-premise performance that has mostly existed offshore.”
The deal includes cash and stock considerations, with IG Group receiving $32.5 million in cash and $67.5 million in shares of Kraken's parent company. IG reported post-tax profits of £73.3 million from the sale and confirmed it would continue to collaborate with Kraken through a product distribution partnership.
Expanding Kraken's global derivatives network
This purchase builds on Kraken's recent acquisitions, including NinjaTrader, which provides US clients with access to CME-listed cryptocurrency futures, and Crypto Facilities, its UK financial derivatives venue regulated by the Financial Conduct Authority (FCA).
Together, these platforms form a global derivatives infrastructure spanning the UK, EU and now the US, enabling institutional clients to move collateral in real time and manage risk efficiently across regions.
Founded in 2011, Kraken now serves over 15 million users worldwide, offering over 450 digital and traditional assets. With the addition of Small Exchange, the company gains regulatory flexibility to offer U.S.-listed cryptocurrency futures contracts and options, which could be a challenge for leading companies abroad like Binance and Bybit.
Cover image from ChatGPT and BTCUSD chart from Tradingview
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