Crypto exchange Kraken has announced the acquisition of Small Exchange, a US Commodity Futures Trading Commission (CFTC)-licensed Designated Contract Market (DCM), from IG Group for $100 million.
The acquisition expands Kraken’s growing global infrastructure, which now includes regulated derivatives venues in the UK, European Union, and the US. Its unified trading system supports six fiat currencies and more than 450 digital and traditional assets, operating within a single platform architecture.
US Derivatives Push
According to the official press release, the latest deal is an important step toward Kraken’s goal of launching a fully US-based derivatives product suite, in a bid to strengthen its presence in the world’s largest capital market. The exchange has now secured a DCM license, which will enable it to design and operate exchange-listed derivatives markets in the United States under CFTC oversight.
This move follows a series of strategic developments in Kraken’s derivatives business. Earlier in 2025, the company acquired NinjaTrader, a leading US futures trading platform, allowing American clients to trade CME-listed cryptocurrency futures alongside spot crypto. In October, Kraken expanded these offerings to include contracts across equities, foreign exchange indices, and commodities such as oil and gold.
The acquisition of Small Exchange continues Kraken’s long-term investment in the derivatives sector. Since 2019, the company has acquired and built multiple regulated entities, including Crypto Facilities in the UK, which operates under the FCA’s oversight and recently launched Europe’s largest regulated crypto futures offering under the MiFID II framework.
Commenting on the acquisition, the crypto exchange’s co-CEO, Arjun Sethi, stated,
“This step connects spot, futures, and margin products inside a single regulated liquidity system, reducing fragmentation, lowering funding latency, and bringing onshore the kind of access and performance that has mostly existed offshore. Under CFTC oversight, Kraken can now integrate clearing, risk, and matching into one environment that meets the same standards as the largest exchanges in the world.”
Key Developments So Far
Kraken posted $412 million in revenue for the second quarter of 2025, up 18% from a year earlier but down 13% from Q1. The exchange’s adjusted EBITDA, however, slipped 7% to $79.7 million as trading activity slowed due to seasonal weakness and global market uncertainty tied to US tariffs during the period.
Despite that, Kraken’s total exchange volume grew 19% year-over-year to $186.8 billion. Meanwhile, funded accounts rose 37% to 4.4 million, and platform assets increased 47% to $43.2 billion. It also gained ground in spot trading, with stablecoin-fiat trading volumes jumping from 43% to 68%.
Last month, Kraken completed a $500 million funding round at a $15 billion valuation, ahead of its 2026 IPO. The raise was self-structured and backed by Tribe Capital, Sethi, and other investors. The exchange has now raised $527 million overall.
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