Kraken Acquires Small Exchange for $100M, Launches US Crypto Derivatives Hub

Kraken has completed the $100 million acquisition of Small Exchange, a CFTC-regulated Designated Contract Market, from IG Group.

Aiming to establish a fully U.S.-based crypto derivatives trading platform, the company announced Thursday.

This acquisition positions Kraken to integrate spot, futures, and margin products within a unified, regulated liquidity system.

Arjun Sethi, Kraken's co-CEO, emphasized that this move connects trading products under one roof.

This reduces market fragmentation and funding delays while meeting global exchange standards.

Creating a U.S. Derivatives Powerhouse

By acquiring Small Exchange, Kraken gains a critical Designated Contract Market license, enabling the design and operation of exchange-listed derivatives markets domestically.

This addresses a major market need, as retail and institutional traders demand regulated, accessible futures and margin products in the U.S.

The move builds on Kraken’s earlier acquisition of NinjaTrader, allowing American clients to trade CME-listed crypto futures alongside spot crypto assets.

This expansion reflects a broader trend, with U.S. crypto derivatives volumes surging 136% year-over-year, driven by growing institutional interest and regulatory clarity.

Sethi highlighted, “Under CFTC oversight, Kraken can now integrate clearing, risk management, and matching into one environment that matches the highest global exchange standards.”

Boosting Market Access and Efficiency

The acquisition ties into Kraken’s strategy to consolidate its derivatives presence globally.

With regulated venues already established in Europe and the UK. U.S. investors now gain enhanced access to sophisticated trading tools within a secure, fully regulated ecosystem.

Industry data from CME Group shows cryptocurrency futures daily volumes reaching 190,000 contracts in Q2 2025, marking a steep rise in market activity.

Underscoring derivatives as the fastest-growing crypto segment. Kraken’s unified platform aims to reduce latency and fragmentation, improving capital efficiency for traders.

This transaction not only expands Kraken’s footprint but also supports the growing demand for regulated crypto futures and margin products in the U.S., potentially reshaping access to digital asset investments.