Kraken Acquires Small Exchange for $100 Million to Expand US Derivatives Offering
Kraken’s $100 million acquisition of Small Exchange from IG Group adds CFTC-licensed DCM capabilities, bolstering its US derivatives portfolio amid preparations for its 2026 IPO.
According to an official announcement, Kraken has acquired Small Exchange, a U.S.-licensed designated contract market, from IG Group for $100 million, comprising $32.5 million in cash and $67.5 million in stock. The deal grants Kraken Commodity Futures Trading Commission (CFTC) licensing to operate a derivatives market in the U.S. This follows its $1.5 billion acquisition of NinjaTrader earlier this year, reflecting an expansion in futures and derivatives trading capabilities. The integration strengthens Kraken’s domestic regulated offerings ahead of its planned IPO in 2026. Market data in September showed combined spot and derivatives volumes falling 17.5% to $8.12 trillion, though open interest rose to a record $230 billion. On CME, altcoin futures like SOL and XRP outperformed while BTC and ETH futures saw declines.
- CFTC-licensed designated contract market: A trading facility approved by the Commodity Futures Trading Commission to operate futures and options markets under US regulation.
- Derivatives: Financial contracts whose value is based on an underlying asset, such as commodities, cryptocurrencies, or indexes.
- Open interest: The total number of outstanding derivative contracts, such as futures or options, that have not been settled.