Kraken has acquired a U.S. Commodity Futures Trading Commission (CFTC)-regulated exchange for $100 million, significantly expanding its footprint in the American derivatives market. The strategic move aims to unify cryptocurrency and traditional asset trading under a supervised framework.
The cryptocurrency exchange announced the purchase of Small Exchange, a Designated Contract Market (DCM) previously owned by the British derivatives firm IG Group. The transaction involved $32.5 million in cash and $67.5 million in stock from Payward, Kraken’s parent company.
This acquisition seeks to establish a single, regulated liquidity system for spot crypto, futures, and margin products. It also paves the way for Kraken to introduce a full suite of U.S.-native derivatives products.
Arjun Sethi, co-CEO of Kraken, stated that the acquisition creates the foundation for a new generation of derivatives markets in the United States. He emphasized the goal of reducing fragmentation and lowering financing latency in the U.S. market, bringing previously offshore access and performance onshore.
The move comes as the U.S. crypto derivatives market experiences substantial growth. Data from the CME Group shows that the average daily volume of cryptocurrency contracts surged by 136% in the second quarter of 2025, reaching 190,000 contracts compared to the same period last year.
Kraken, founded in 2011, is one of the oldest and largest cryptocurrency platforms globally, serving over 15 million institutional and retail users. The company has been aggressively expanding its derivatives offerings. Earlier in 2025, Kraken acquired NinjaTrader, another U.S.-regulated futures platform, enabling its clients to trade crypto contracts listed on the Chicago Mercantile Exchange alongside spot cryptocurrency.
Kraken has also broadened its offerings to include tokenized stocks, commodities such as oil and gold, and traditional CME futures. The platform now operates a regulated business in the United Kingdom, the European Union, and the United States, supporting six fiat currencies and more than 450 digital and traditional assets.
Sethi further explained that the investment focuses on building a better market structure, not merely marketing. He highlighted the importance of moving collateral in real-time and reducing capital inefficiencies that have historically limited domestic traders.
The completion of the acquisition is subject to standard regulatory approvals. IG Group is also expected to enter a partnership agreement with Kraken as part of the deal.