Kraken’s Acquisition of Small Exchange Propels Launch of Massive US-Based Crypto Derivatives Platform
Kraken, one of the largest international crypto exchanges, has made a significant move into the US derivatives market through its acquisition of Small Exchange from IG Group for $100 million. This strategic purchase provides Kraken with the impetus to launch a heavily regulated, US-based crypto derivatives platform under the supervision of the Commodity Futures Trading Commission (CFTC).
### A Fully Licensed Designated Contract Market
Through this acquisition, Kraken becomes a designated contract market (DCM) fully licensed by the CFTC. Partnering with Small Exchange, which is already a CFTC-licensed DCM, enables Kraken to offer regulated futures, options, and margin trading products within the United States. This marks a crucial step toward developing a comprehensive US-based derivatives platform.
### Unifying Spot, Futures & Margin Trading Like Never Before
Kraken’s co-CEO, Arjun Sethi, highlighted that the acquisition connects spot, futures, and margin products under one regulated liquidity infrastructure. Kraken now also provides clearing, risk management, and trade matching all within a single environment. This integrated approach allows Kraken to compete directly with leading global exchanges operating under CFTC supervision.
By consolidating these trading services, Kraken significantly reduces market fragmentation and enhances trade execution speed. The platform is uniquely positioned to serve both retail and institutional US clients seeking regulated crypto derivatives.
### A Strategic Win in a Booming US Crypto Derivatives Market
The US crypto derivatives market is experiencing rapid growth, fueled largely by increasing institutional participation. According to CME Group data, crypto futures daily volume surged by 136% year-over-year in Q2 2025, reaching 190,000 contracts traded daily.
Kraken’s acquisition of Small Exchange builds upon its prior $1.5 billion purchase of NinjaTrader, further strengthening its US derivatives infrastructure. This strategic expansion also aligns with Kraken’s anticipated IPO in 2026, which aims to establish an effective, fully regulated US derivatives ecosystem.
### A New Dawn for Kraken and US Crypto Trading
With this acquisition, Kraken offers unparalleled onshore performance combined with robust regulatory compliance. By providing multiple trading products under one regulated framework—linking advanced clearing and risk management systems—Kraken has the potential to transform US crypto trading standards.
This move is set to attract both retail and institutional traders as the US crypto derivatives market continues to expand rapidly, positioning Kraken at the forefront of this evolving landscape.
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