Kraken Acquires a CFTC-regulated Designated Contract Market, Expanding Derivatives Footprint in the U.S. Market

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

CHEYENNE, Wyo.--(BUSINESS WIRE)--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.

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.

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.

For more information, please visit http://kraken.com/features/futures.

About Kraken

Founded in 2011, Kraken is one of the world’s longest-standing and most secure crypto platforms globally. Kraken clients trade more than 450 digital assets, traditional assets such as U.S. futures and U.S.-listed stocks and ETFs, and 6 different national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. Trusted by more than 15 million institutions, professional traders and consumers, Kraken is one of the fastest, most liquid and performant trading platforms available.

Kraken’s suite of products and services includes the Kraken App, Kraken Pro, the Krak App, Kraken Institutional, Kraken’s on-chain offerings and the Ninja Trader retail trading platform. Across these offerings, clients can buy, sell, stake, earn rewards, send and receive assets, custody holdings, and access advanced trading, derivatives, and portfolio management tools.

Kraken has set the industry standard for transparency and client trust, and it was the first crypto platform to conduct Proof of Reserves. It complies with regulations and laws applicable to its business, while actively protecting client privacy and maintaining the highest security standards.

For more information about Kraken, please visit www.kraken.com.