Lucía Peña
Kraken, one of the world’s leading cryptocurrency exchanges, has officially acquired Small Exchange — a CFTC-regulated Designated Contract Market (DCM) — from IG Group in a $100 million deal, according to a Thursday announcement.
The move marks a pivotal expansion for Kraken as it establishes a fully U.S.-based derivatives trading platform under the supervision of the Commodity Futures Trading Commission (CFTC). This acquisition positions Kraken to compete more directly with major regulated futures exchanges in the United States.
In the company’s statement, Arjun Sethi, Kraken’s co-CEO, highlighted that the acquisition will enable Kraken to integrate spot, futures, and margin trading into a single regulated liquidity environment.
“This step connects spot, futures, and margin products inside a single regulated liquidity system,” Sethi said. “Under CFTC oversight, Kraken can now integrate clearing, risk, and matching within one framework that meets the same standards as the world’s largest exchanges.”
By bringing all core trading products together under a compliant system, Kraken aims to deliver greater transparency, tighter risk management, and enhanced liquidity for both institutional and retail traders.
Kraken’s Continued Push into U.S. Futures
The Small Exchange acquisition follows Kraken’s earlier strategic move to purchase NinjaTrader, another U.S.-based futures platform, earlier this year. Together, these deals demonstrate Kraken’s long-term commitment to expanding its footprint in regulated derivatives markets, particularly in the U.S.
The exchange is positioning itself as a key player in bridging traditional finance and crypto-native derivatives, leveraging its regulatory alignment to attract professional and institutional clients seeking compliant digital asset exposure.
U.S. Crypto Derivatives Market Sees Rapid Institutional Growth
Over the past year, the U.S. crypto derivatives market has witnessed remarkable growth, fueled by institutional adoption and new regulated product launches.
According to CME Group, the largest derivatives exchange in the U.S., average daily cryptocurrency trading volumes surged 136% year-over-year in the second quarter of 2025, reaching 190,000 contracts.
As institutional demand continues to climb, Kraken’s latest acquisition could further solidify its role as a leading player in the rapidly evolving landscape of regulated crypto derivatives trading.
