Kraken Acquires Small Exchange to Boost U.S. Derivatives Market

Kraken has acquired Small Exchange from IG Group for $100 million, a strategic move to expand regulated crypto derivatives offerings in the U.S., according to a recent press release.

This acquisition marks a significant step for Kraken, providing it with a CFTC-regulated DCM license, enhancing its capacity in the expanding U.S. crypto derivatives market.

Kraken Bolsters U.S. Derivatives Market with $100M Acquisition

Kraken has acquired the Small Exchange, a CFTC-regulated Designated Contract Market, for $100 million. The deal, divided as $32.5 million in cash and $67.5 million in Payward stock, allows Kraken to enhance its U.S. derivatives offerings.

This acquisition marks a pivotal milestone for Kraken, meeting the same regulatory standards as major exchanges and allowing the integration of spot, futures, and margin trading under one platform. The unified environment targets both institutional and retail client demands in the U.S. As noted by Co-CEO Arjun Sethi:

“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. This is not about marketing or narrative. It’s about building better market structure.”

Market observers note the significance, seeing it as a bid to capture more institutional flow.

CFTC License Positions Kraken for Broader Institutional Reach

Did you know? The CFTC license positions Kraken among a select few exchanges in the U.S. capable of offering regulated derivatives, reflecting a growing institutional interest in the crypto derivatives market.

As of October 16, 2025, the cryptocurrency market shows Bitcoin (BTC) priced at $110,410.98, with a market cap of 2.20 trillion. BTC’s dominance stands at 58.88%, with a 24-hour trading volume of $70,939 million, reporting a decrease of 11.07% according to CoinMarketCap.

The Coincu research team highlights that Kraken’s new avenue underlines a potential surge in institutional trading, given the regulated nature of U.S.-based derivatives. Historical data suggest increased market depth and liquidity for BTC and ETH, reflecting broader infrastructure advancements.