Kraken signs $100 million deal for Small Exchange to bulk up US derivatives business

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

Crypto heavyweight Kraken said on Thursday it has acquired futures exchange Small Exchange from IG Group for $100 million, paving the way to launch a fully U.S.-based derivatives suite.

Small Exchange is a U.S. Commodity Futures Trading Commission-licensed designated contract market, giving Kraken a regulated venue to offer futures and options to both retail and institutional clients.

"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," Arjun Sethi, co-CEO of Kraken said in a statement.

Once the preserve of banks and brokers, the derivatives market is drawing digital asset firms looking for liquidity and risk management.

Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.


This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.
Loading

The trillion-dollar crypto market has moved beyond spot trading, with exchanges and investors seeking institutional-grade tools such as futures, options and tokenized assets.

Crypto-linked futures and options have been among the fastest-growing segments as investors seek to manage risk.

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

The deal comes as a more crypto-friendly regulatory tone under U.S. President Donald Trump encourages digital asset firms to expand in the United States with promises of clearer rules.

Earlier this year, Kraken agreed to buy retail futures trading platform NinjaTrader for $1.5 billion.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here