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Kraken buys Small Exchange in $100 million deal to expand U.S. derivatives operations

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Crypto exchange Kraken has agreed to acquire Small Exchange from IG Group for $100 million, marking a major step toward building a fully U.S.-based derivatives platform that can serve both retail and institutional traders.

Small Exchange holds a Commodity Futures Trading Commission (CFTC) license as a designated contract market, giving Kraken access to a regulated venue for offering futures and options — products that have become central to the digital asset industry’s push for mainstream legitimacy.

“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,” said Arjun Sethi, Kraken’s co-CEO.

The acquisition reflects a growing trend of digital asset firms entering traditional capital markets, as cryptocurrencies gain wider acceptance and investors demand more sophisticated risk-management tools. Analysts say institutional adoption is accelerating as regulated crypto derivatives gain traction.

“Digital asset firms are no longer content being sideshow players,” said Michael Ashley Schulman of Running Point Capital Advisors. “They aim to wrest seats in the core capital markets ecosystem.”

Kraken described the acquisition as a strategic move to establish “institutional-grade markets” as crypto matures under a more crypto-friendly regulatory climate in the U.S. under President Donald Trump.

Earlier this year, Kraken also announced a $1.5 billion deal to acquire NinjaTrader, another retail futures trading platform, strengthening its position in the fast-growing derivatives segment.

Kraken to Acquire NinjaTrader for $1.5 Billion, Expanding into Multiple Asset Classes

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Kraken, one of the world’s largest cryptocurrency exchanges, announced on Thursday that it would acquire retail futures trading platform NinjaTrader for $1.5 billion. This acquisition will allow Kraken to diversify its offerings by expanding into multiple asset classes, including futures and derivatives, while growing its user base.

The deal comes at a time of optimism within the cryptocurrency industry, as many anticipate more relaxed regulations under the leadership of U.S. President Donald Trump. Trump, known for courting crypto donors during the election, has promised support for the sector, fueling hopes of policy shifts that could encourage institutional adoption and provide clearer rules for digital asset trading.

Kraken’s acquisition of NinjaTrader follows a recent legal victory when the U.S. Securities and Exchange Commission (SEC) dismissed a civil lawsuit accusing Kraken of operating illegally as an unregistered securities exchange. Kraken, ranked as the world’s tenth-largest cryptocurrency spot exchange, according to CoinMarketCap, is poised to benefit from the growing demand for diverse financial products that blend traditional and digital assets.

This acquisition highlights the ongoing convergence between crypto companies and traditional financial firms, as the digital asset market continues to gain broader acceptance. Oppenheimer analyst Owen Lau noted that this deal is significant, marking a major crypto company’s expansion into traditional finance. Lau anticipates further deals in this sector, especially under a pro-crypto administration.

NinjaTrader, which has nearly 2 million retail traders, will continue to operate independently under Kraken, with the deal expected to close in the first half of 2025.