Kraken's acquisition of Small Exchange marks a sharp push into US derivatives markets. The crypto firm purchased the CFTC-licensed Designated Contract Market (DCM) from IG Group for $100 million. The deal gives Kraken a fully regulated pathway to list US derivatives under direct supervision.
The acquisition allows Kraken to merge spot, futures, and margin products into a single regulated trading environment. Arjun Sethi, Co-CEO of Kraken, said the acquisition “lays the foundation for a new generation of United States derivatives markets.” He added, the structure helps reduce fragmentation and latency, and brings onshore performance that was mostly offshore until now.
The transaction blends cash and equity. Kraken paid $32.5 million in cash plus $67.5 million in equity of its parent company, Payward. IG retains a distribution partnership, allowing the firm to keep offering certain derivatives products through the newly acquired venue.
This latest deal builds on Kraken’s earlier moves. The firm had earlier acquired NinjaTrader, enabling access to CME-listed crypto futures for US users. It also holds regulated derivatives infrastructure in Europe via its acquisition of Crypto Facilities under MiFID II.
With operations spanning six fiat currencies and over 450 digital and traditional assets, Kraken is now one of the few crypto firms commanding regulated derivatives venues across the US, UK, and EU.
For IG Group, the exit yields profit and shifts strategic focus. The firm booked a £73.3 million post-tax gain and strengthened regulatory capital by £22.7 million. It will steer its crypto ambitions toward markets in the UK and Australia.
Kraken’s acquisition signals maturation in the US crypto derivatives sector. It reflects rising demand for compliant, onshore trading venues amid global attention. As regulatory frameworks evolve, Kraken stands ready to reshape how American clients access crypto derivatives under oversight.
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