Kraken Buys CFTC-Regulated Small Exchange for $100M to Launch US Derivatives Platform
Kraken has acquired Small Exchange, a CFTC-regulated Designated Contract Market, from IG Group for $100 million, marking a major step in its effort to expand into the US derivatives market.
Key Takeaways:
Kraken acquired CFTC-regulated Small Exchange for $100 million to expand its US derivatives operations. The deal allows Kraken to connect spot, futures, and margin trading under one regulated system. Kraken strengthens its global footprint and positions itself as a leading provider of institutional-grade crypto markets.The acquisition allows Kraken to create a fully U.S.-based trading venue for regulated futures and other derivatives products.
Kraken to Unite Spot, Futures, and Margin Trading Under One Regulated System
In a Thursday press release, Kraken said the purchase enables the company to integrate spot, futures, and margin trading within a single regulated liquidity system.
“Under CFTC oversight, Kraken can now integrate clearing, risk, and matching into one environment that meets the same standards as the largest exchanges in the world,” said Arjun Sethi, co-CEO of Kraken.
The move comes amid a surge in US crypto derivatives trading, driven by institutional investors and the growing availability of regulated products.
Data from the CME Group shows that average daily cryptocurrency futures volumes rose 136% year-over-year in the second quarter, reaching 190,000 contracts.
The acquisition of Small Exchange, originally owned by IG Group, gives Kraken the framework to offer onshore derivatives products under direct CFTC supervision, a milestone few crypto firms have achieved.
The company said the deal will help reduce market fragmentation and improve efficiency by connecting its spot and derivatives markets through one infrastructure.
Kraken’s expansion into the US derivatives space follows a series of strategic acquisitions.
Earlier this year, the company bought NinjaTrader, a US futures platform that offers access to CME-listed cryptocurrency futures.
Kraken also operates regulated derivatives venues in the U.K. and European Union, where it provides access to more than 450 digital and traditional assets across six fiat currencies.
With this latest acquisition, Kraken aims to establish itself as a global player in institutional-grade crypto markets, positioning its infrastructure to serve the next generation of regulated trading.
“This is not about marketing or narrative,” Sethi added. “It’s about building better market structure.”
Kraken Eyes $20B Valuation Ahead of 2026 IPO
As reported, Kraken is reportedly in advanced talks to raise $200–$300 million from a strategic investor, a deal that could value the crypto exchange at $20 billion ahead of a planned 2026 public listing, according to Bloomberg.
The move follows a quiet $500 million round completed earlier at a $15 billion valuation, signaling the company’s growing momentum among U.S. crypto heavyweights preparing to go public.
The San Francisco-based exchange is working with Morgan Stanley and Goldman Sachs to lead its IPO and continues to expand aggressively through acquisitions and leadership changes.
Beyond its financial growth, Kraken is becoming more politically active. It pledged $2 million to pro-crypto political action committees supporting candidates aligned with digital asset innovation, including donations to the Digital Freedom Fund and Andreessen Horowitz’s America First Digital initiative.
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