TLDR
- Kraken purchased Small Exchange from IG Group for $100 million to establish a US-based derivatives platform
- Small Exchange holds a CFTC-licensed Designated Contract Market approval, allowing Kraken to offer regulated futures and options
- The acquisition enables Kraken to integrate clearing, risk management, and trading into one regulated environment
- This follows Kraken’s earlier $1.5 billion deal to acquire NinjaTrader earlier in 2025
- The move comes during a more crypto-friendly regulatory period under President Trump
Crypto exchange Kraken has completed its acquisition of Small Exchange for $100 million. The deal gives Kraken access to a CFTC-licensed Designated Contract Market.
Today in money
Cryptocurrency exchange Kraken has purchased IG’s U.S. derivatives trading platform for $100 million, gaining a valuable regulated foothold in U.S. markets.
The acquisition includes full… pic.twitter.com/5FpbYMQAnX— Mannie
Small Exchange was purchased from IG Group. The acquisition provides Kraken with the infrastructure to launch a fully US-based derivatives platform.
The Designated Contract Market license allows Kraken to offer futures and options to both retail and institutional clients. These products will operate under CFTC oversight.
Arjun Sethi, co-CEO of Kraken, said the acquisition creates a unified trading environment. The platform will connect spot trading, futures, and margin products in one regulated system.
The CFTC oversight allows Kraken to integrate clearing, risk management, and matching functions. This creates an environment that meets the standards of major global exchanges.
The crypto derivatives market has grown rapidly in recent years. Investors use futures and options to manage risk in their digital asset portfolios.
The trillion-dollar crypto market has expanded beyond simple spot trading. Exchanges and institutional investors now seek tools like futures, options, and tokenized assets.
Building Institutional Infrastructure
Kraken stated the acquisition lays groundwork for institutional-grade markets. The company aims to reduce fragmentation and lower funding latency for traders.
The deal allows Kraken to offer onshore access to products previously only available offshore. This addresses a gap in the US crypto derivatives market.
The acquisition comes during a more favorable regulatory environment for crypto companies. President Donald Trump’s administration has encouraged digital asset firms to expand US operations with promises of clearer regulations.
Earlier in 2025, Kraken agreed to purchase retail futures platform NinjaTrader for $1.5 billion. That deal showed Kraken’s commitment to expanding its derivatives offerings.
Recent Product Launches
In September 2025, Kraken launched its “Perps” perpetual trading product. The service allows users to trade cryptocurrency futures through price movement predictions.
Also in September, Kraken introduced xStocks in the European market. The service lets European clients trade digital versions of popular stocks like Tesla and Nvidia.
These product launches form part of Kraken’s broader expansion strategy. The company is preparing for a potential IPO in 2026.
The Small Exchange acquisition adds to Kraken’s regulatory licenses and trading infrastructure. The platform now has the tools to serve both retail traders and institutional clients in the US derivatives market.
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