Kraken is boosting its presence in the US derivatives market by acquiring Small Exchange, a futures market regulated within the United States.
The acquisition, valued at $100 million, was completed with IG Group, a company specializing in financial services.
This strategic move allows Kraken to broaden its range of trading products while staying compliant with regulations in the US.
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Small Exchange holds a license from the US Commodity Futures Trading Commission (CFTC) as a designated contract market. Acquiring this entity enables Kraken to manage a fully compliant exchange for derivatives trading.
This acquisition permits Kraken to quickly grow its product options in the US, avoiding the time and resources required to establish a new platform from the ground up.
According to Arjun Sethi, co-CEO of Kraken, bringing Small Exchange into the Kraken fold allows the company to consolidate key trading functionalities – including order matching, risk mitigation, and clearing services – under a unified umbrella.
Sethi highlighted that this operational model aligns with those used by many leading global exchanges. Furthermore, it strengthens Kraken’s vision of a consolidated platform facilitating spot, futures, and margin trading within a regulated environment.
Kraken already operates derivatives platforms in the UK and the EU. By adding a US-regulated platform, Kraken enhances the interconnectivity of its global trading infrastructure.
In related news, Kraken recently allocated $2 million towards conservative political action committees that support digital asset rights. Learn more about the purpose of this funding here.