Kraken Expands U.S. Footprint With $100M Small Exchange Acquisition Amid Derivatives Push

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Kraken has expanded its U.S. regulatory footprint through the $100 million acquisition of Small Exchange, a Commodity Futures Trading Commission (CFTC)-licensed derivatives trading platform previously owned by IG Group.

The decision marks a climactic step in Kraken’s bid to bring regulated crypto derivatives trading onshore and strengthen its presence in the world’s largest capital market.

BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview

Kraken Secures CFTC License to Build Regulated U.S. Derivatives Hub

The acquisition gives Kraken ownership of a Designated Contract Market (DCM) license, enabling it to design and operate exchange derivatives directly under U.S.. Kraken says this structure will allow it to integrate spot, margin, and futures products into a single regulated liquidity system, a first for its American clients.

“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’s co-CEO.

He also added, “This step connects spot, futures, and margin products inside a single regulated system, reducing fragmentation and bringing onshore the kind of access and performance that has mostly existed offshore.”

The transaction includes both cash and equity considerations, with IG Group receiving $32.5 million in cash and $67.5 million in Kraken’s parent company stock. IG reported a post-tax profit of £73.3 million from the sale and confirmed it will continue collaborating 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 U.S. clients access to CME-listed crypto futures, and Crypto Facilities, its U.K.-based derivatives venue regulated by the Financial Conduct Authority (FCA).

Together, these platforms form a global derivatives infrastructure spanning the U.K., EU, and now the U.S., 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 more than 450 digital and traditional assets. With the addition of Small Exchange, the company gains the regulatory flexibility to introduce U.S.-listed crypto futures and options, potentially challenging offshore leaders like Binance and Bybit.

Cover image from ChatGPT, BTCUSD chart from Tradingview

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