Kraken Expands U.S. Derivatives with CFTC-Market Acquisition

Acquisition of Small Exchange expands Kraken’s global trading infrastructure and paves the way for a fully U.S.-native derivatives venue.

Kraken, one of the world’s longest-standing, most liquid and secure cryptocurrency platforms, today announced it has acquired Small Exchange, a CFTC-licensed Designated Contract Market (DCM), from IG Group., for $100 million. This move lays the foundation for Kraken to launch a fully U.S.-native derivatives product suite, creating a deep, sophisticated onshore venue in the world’s largest capital market.

The acquisition of Small Exchange advances Kraken’s mission to build a unified, high-performance trading environment. A DCM authorizes Kraken, under the oversight of the Commodity Futures Trading Commission (CFTC), to design and create markets for exchange-listed derivatives in the U.S.

Read More: ACI Worldwide, BitPay Unite to Enable Global Crypto Payments

Arjun Sethi, co-CEO of Kraken:

“Kraken’s acquisition of a CFTC regulated Designated Contract Market creates the foundation for a new generation of United States derivatives markets. It is designed for scale, transparency, and efficiency.

“This step connects spot, futures, and margin products inside a single regulated liquidity system, reducing fragmentation, lowering funding latency, and bringing onshore the kind of access and performance that has mostly existed offshore. 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 acquisition is part of a larger build of global infrastructure. Kraken now operates regulated derivatives venues in the United Kingdom, the European Union, and the United States. The system spans six fiat currencies and more than 450 digital and traditional assets, all within one architecture.

“Together, these elements create a network that moves collateral in real time, nets exposure across jurisdictions, and reduces capital inefficiencies that have long held back U.S. traders. This is not about marketing or narrative. It is about building better market structure.”

Today’s news follows a series of strategic milestones in Kraken’s U.S. derivatives expansion. Earlier this year, Kraken acquired NinjaTrader, a leading U.S. futures platform, enabling U.S.-based clients to trade CME-listed cryptocurrency futures, alongside spot crypto in a unified interface. In October, Kraken broadened this offering to include a broader range of contracts, covering equities, FX indices and commodities such as oil and gold.

Read More: North Shore Bank Boosts Efficiency with Nextenture Cloud

This acquisition continues Kraken’s multi-year investment in derivatives markets. In 2019, Kraken acquired Crypto Facilities, a UK FCA-regulated Multilateral Trading Facility (MTF), and earlier this year launched Europe’s largest regulated crypto futures offering under the MiFID II framework.

By securing the necessary licensing and infrastructure today, Kraken is laying the groundwork for institutional-grade markets as crypto matures.

Write to us [⁠wasim.a@demandmediaagency.com] to learn more about our exclusive editorial packages and programmes.