Kraken acquires CFTC-regulated Small Exchange for $100M

Kraken has expanded its U.S. presence with the $100 million purchase of Small Exchange, a derivatives platform licensed by the Commodity Futures Trading Commission.

The deal marks a key milestone in Kraken’s plan to build a fully regulated trading network, combining crypto and traditional derivatives within one U.S.-based framework.

According to Kraken’s Oct. 16 press release, the exchange’s acquisition from IG Group gives Kraken a Designated Contract Market license, paving the way for a regulated U.S. derivatives suite.

Boosting Kraken’s U.S. market access

Kraken can now list derivatives directly in the U.S. market thanks to its latest purchase. This step connects spot, futures, and margin trading into one regulated system, reducing the need for fragmented offshore venues.

“Kraken’s acquisition of a CFTC regulated Designated Contract Market creates the foundation for a new generation of United States derivatives markets. It is designed for scale, transparency, and efficiency.”

— Kraken co-CEO Arjun Sethi

With this addition, Kraken has the framework to clear and manage risk within one structure, improving efficiency for institutional traders. The exchange can also develop new U.S.-based derivatives products without depending on external partners.

Expanding global infrastructure

Kraken’s acquisition of Small Exchange follows several major steps in its global expansion. In 2019, it acquired Crypto Facilities in the U.K., which operates under the Financial Conduct Authority. Earlier this year, Kraken purchased NinjaTrader, giving U.S. users access to CME-listed cryptocurrency futures through a unified interface.

Together, these venues form part of Kraken’s broader network expansion spanning the U.K., the European Union, and now the U.S. The exchange says this system allows it to move collateral in real time and manage exposure across regions more efficiently.

Founded in 2011, Kraken now serves more than 15 million users worldwide and supports trading in over 450 assets, including digital and traditional markets. The company says this latest move is about “building better market structure,” not short-term marketing or narrative.