Kraken’s acquisition of a small exchange (100M) gives it the impetus to launch a massive US-based crypto derivatives platform regulated heavily by the CFTC.
Kraken, one of the largest international crypto exchanges, has bought Small Exchange of IG Group at 100 million dollars, making a significant entry into the US derivatives market with stringent regulatory controls.
Through this arrangement, Kraken will be a designated contract market (DCM) that is fully licensed by the Commodity Futures Trading Commission (CFTC).
This acquisition will enable Kraken to develop a full US-based derivatives platform.
By partnering with the Small Exchange, a DCM licensed by the CFTC, Kraken can provide regulated futures, options, and margin products in the U.S.
Unifying Spot, Futures & Margin Trading Like Never Before
Kraken co-CEO, Arjun Sethi, remarked that the acquisition links spot, futures, and margin products within one regulated liquidity infrastructure.
Kraken also provides clearing, risk management, and trade matching in a single environment, competing with leading world exchanges under CFTC supervision.
This action significantly decreases fragmentation of the market and enhances the speed of trade execution. It places Kraken in a unique position to cater to the US retail and institutional clients who want regulated crypto derivatives.
A Strategic Win in Booming US Crypto Derivatives Market
The crypto derivatives market in the US has recently experienced a boom, and institutional investors are stimulating huge volume expansion.
According to CME Group, crypto futures daily volume increased by 136 percent year-over-year in the second quarter of 2025, trading 190,000 contracts.
The acquisition of Kraken is a continuation of its previous acquisition of $1.5 billion of NinjaTrader, which also enhances its US derivatives infrastructure.
This move preconditions the expected 2026 IPO of Kraken, which will provide an effective US-regulated derivative ecosystem.
This purchase marks a new dawn at Kraken. The Kraken offers unparalleled onshore performance and regulatory compliance by offering several trading products on a single regulated roof.
Combining advanced clearing and risk systems has the potential to transform US crypto trading standards to entice retail and institutional traders in an increasingly expanding market.
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