Kraken Acquires Small Exchange for $100 Million to Expand in US

Kraken Acquires Small Exchange

Kraken has acquired Small Exchange, a CFTC-licensed Designated Contract Market (DCM), for $100 million in partnership with IG Group.
This acquisition enables Kraken to establish a fully US-native derivatives venue and product suite.
It expands Kraken's operations in the US, aligning with its mission to create a unified trading environment.
The acquisition allows Kraken to design markets specifically for exchange-listed derivatives under CFTC oversight.

Impact on US Derivatives Market

Acquisition creates a sophisticated onshore venue, improving access and performance previously available only offshore.
Facilitates integration of clearing, risk, and matching into a single regulated liquidity system.
Aims to reduce market fragmentation and lower funding latency.

Recent Developments and New Products

Kraken recently launched "Perps," a perpetual trading product for cryptocurrency futures.
Introduced xStocks service in Europe, enabling trading of digital versions of equities like Tesla and Nvidia.
These moves align with Kraken's broader strategy, potentially leading to an IPO in 2026.