Kraken has expanded its U.S. regulatory footprint through the $100 million acquisition of Small Exchange, a Commodity Futures Trading Commission (CFTC)-licensed derivatives trading platform previously owned by IG Group.
The decision marks a climactic step in Kraken’s bid to bring regulated crypto derivatives trading onshore and strengthen its presence in the world’s largest capital market.
“Kraken’s acquisition of a CFTC-regulated Designated Contract Market creates the foundation for a new generation of United States derivatives markets,” said Arjun Sethi, Kraken’s co-CEO.
He also added, “This step connects spot, futures, and margin products inside a single regulated system, reducing fragmentation and bringing onshore the kind of access and performance that has mostly existed offshore.”
The transaction includes both cash and equity considerations, with IG Group receiving $32.5 million in cash and $67.5 million in Kraken’s parent company stock. IG reported a post-tax profit of £73.3 million from the sale and confirmed it will continue collaborating with Kraken through a product distribution partnership.
Together, these platforms form a global derivatives infrastructure spanning the U.K., EU, and now the U.S., enabling institutional clients to move collateral in real time and manage risk efficiently across regions.
Founded in 2011, Kraken now serves over 15 million users worldwide, offering more than 450 digital and traditional assets. With the addition of Small Exchange, the company gains the regulatory flexibility to introduce U.S.-listed crypto futures and options, potentially challenging offshore leaders like Binance and Bybit.
Cover image from ChatGPT, BTCUSD chart from Tradingview
