On September 4, 2025, cryptocurrency exchange Kraken announced the acquisition of Breakout, a proprietary crypto trading firm established in 2023. This strategic move enables Kraken to introduce a funded trading program where users can apply for up to $200,000 in trading credit, with no personal deposit required, and Kraken retaining approximately 20% of the profits while traders keep up to 90%.
The acquisition has generated mixed reactions; Breakout's community welcomed the deal, but Kraken's users expressed skepticism about the lack of synergy with existing offerings. Speculation arose that this could be a precursor to an initial public offering (IPO), drawing parallels to Circle's successful IPO in June 2025. Kraken's co-CEO Arjun Sethi confirmed that Breakout will leverage Kraken's infrastructure, integrating into Kraken Pro with access to over 50 crypto pairs, including up to 5x leverage on Bitcoin (BTC) and Ethereum (ETH) contracts, and payouts in USDC stablecoin.
This expansion follows Kraken's recent acquisitions, such as Capitalise.ai for trading automation, and regulatory milestones like obtaining the MiCA license in Europe. The deal aims to boost trading volume, liquidity, and adoption for major cryptocurrencies, with qualified traders able to use the funded capital for real investments.