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2w ago

Kraken Acquires CFTC-Licensed Small Exchange for $100 Million to Build U.S. Derivatives Platform

The deal hands Kraken a Designated Contract Market under CFTC oversight, positioning it to unify clearing, risk and execution in the U.S.

Kraken cryptocurrency exchange logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration
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Kraken acquires cftc regulated small exchange for $100m

Overview

  • Kraken bought Small Exchange from IG Group for $100 million, comprising $32.5 million in cash and $67.5 million in Payward stock.
  • Ownership of the CFTC-licensed Designated Contract Market gives Kraken a regulated U.S. venue to list exchange-traded futures and options.
  • IG reported a post-tax gain of £73.3 million and a £22.7 million uplift to regulatory capital, and it will continue distributing products under a partnership with Kraken.
  • Kraken says the license enables integration of spot, futures and margin in one regulated system with in-house clearing and risk, though it has not announced U.S. launch dates for new derivatives.
  • The move builds on Kraken’s 2025 expansion, including the $1.5 billion NinjaTrader acquisition and EU/UK derivatives venues, with reporters noting it strengthens positioning ahead of a planned 2026 IPO; some observers also speculate about future uses such as prediction markets, which Kraken has not confirmed.