Kraken Buys Small Exchange $100M for US Derivatives Expansion

Kraken acquired Small Exchange , regulated by the Commodity Futures Trading Commission (CFTC), the U.S. agency overseeing derivatives like futures and swaps, from IG Group for $100 million. The deal includes $32.5 million cash and $67.5 million in Payward stock. Small Exchange, launched in 2017, targets retail traders. IG retains a partnership role. Unified Trading Platform Planned The purchase grants Kraken a Designated Contract Market license to offer derivatives trading in the U.S. It aims to integrate spot, futures, and margin trading. No launch date is set. This builds on Kraken’s July 2025 CME futures expansion. The CME, the largest global derivatives exchange, trades futures and options on commodities and indices. Strategic Acquisition Spree Kraken’s $1.5 billion NinjaTrader buy in March 2025 accessed CME markets, following Breakout and Crypto Facilities deals. Co-CEO Arjun Sethi emphasized reducing trading fragmentation to rival offshore platforms. Derivatives trading volumes reached $20.2 trillion in Q2 2025, down 4% from last year. IPO and Market Positioning The acquisition strengthens Kraken’s U.S. presence amid strong derivatives demand. Speculation points to a January 2026 Nasdaq IPO. Kraken’s licenses span the U.S., UK, and EU, making it a rare multi-jurisdictional crypto exchange.