Kraken acquires CFTC-approved exchange in $100 million deal

In a $100 million deal, Kraken will secure a CFTC-regulated DCM license and launch a completely U.S.-specific suite of derivatives products.

Cryptocurrency exchange Kraken announced that it will acquire Small Exchange, a designated contract market (DCM) licensed by the U.S. Commodity Futures Trading Commission (CFTC), from IG Group for $100 million.

This acquisition expands Kraken’s growing global infrastructure, which now includes regulated derivatives exchanges in the United Kingdom, European Union, and United States. Its integrated trading system supports six fiat currencies and over 450 digital and traditional assets and operates within a single platform architecture.

US derivatives push up

According to an official press release, the latest agreement is a significant step towards Kraken’s goal of launching a fully US-based derivatives product suite to strengthen its presence in the world’s largest capital markets. The exchange has now secured a DCM license, which will allow it to design and operate a U.S. exchange-listed derivatives market under the supervision of the CFTC.

The move follows a series of strategic developments in Kraken’s derivatives business. In early 2025, the company acquired NinjaTrader, a leading US futures trading platform, allowing US customers to trade CME-listed crypto futures alongside spot cryptocurrencies. In October, Kraken expanded these services to include contracts across stocks, foreign exchange indices, and commodities such as oil and gold.

With the acquisition of Small Exchange, Kraken continues its long-term investment in the derivatives space. Since 2019, the company has acquired and built several regulated entities, including UK-based Crypto Facilities, which operates under FCA supervision and recently launched Europe’s largest regulated crypto futures product offering under the MiFID II framework.

Commenting on the acquisition, Arjun Sethi, co-CEO of the cryptocurrency exchange, said:

“This step will connect spot, futures, and margin products within a single regulated liquidity system, reducing fragmentation, reducing funding latency, and bringing onshore the access and performance that has mostly existed offshore. Under CFTC oversight, Kraken can now consolidate clearing, risk, and matching into one environment that meets the same standards as the world’s largest exchanges.”

Main developments to date

Kraken recorded revenue of $412 million in the second quarter of 2025, up 18% year over year but down 13% compared to the first quarter. However, the exchange’s adjusted EBITDA decreased 7% to $79.7 million as trading activity slowed due to seasonal weakness and global market uncertainty associated with U.S. tariffs during the period.

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Despite this, Kraken’s total transaction value increased 19% year over year to $186.8 billion. Meanwhile, funded accounts increased 37% to $4.4 million and platform assets increased 47% to $43.2 billion. Spot trading also took off, with stablecoin and fiat trading volume jumping from 43% to 68%.

Kraken last month completed a $500 million funding round at a $15 billion valuation ahead of an IPO in 2026. The financing was self-organized and supported by Tribe Capital, Sethi, and other investors. The exchange has now raised $527 million overall.