Kraken Acquires CFTC-Regulated Small Exchange for $100M to Expand U.S. Derivatives Market

Kraken has acquired Small Exchange, a CFTC-regulated Designated Contract Market (DCM), from IG Group for $100 million, announced on October 16, 2025. This move significantly strengthens Kraken's presence in the U.S. derivatives market, making it one of the few platforms to hold derivatives licenses in the U.S., U.K., and E.U.

The acquisition allows Kraken to operate a fully regulated derivatives platform in the U.S., enabling the offering of futures, margin trading, and other products under proper oversight. Kraken co-CEO Arjun Sethi emphasized, "This acquisition creates a foundation for a new generation of U.S. derivatives markets. It is designed for scale, transparency, and efficiency." This enhances Kraken's credibility with regulators and provides traders with safer, more diverse options.

The deal is structured with $32.5 million in cash and $67.5 million in Payward stock, Kraken's parent company, preserving cash while giving IG Group a stake in future growth. By integrating Small Exchange's technology and regulatory approvals, Kraken can launch new products faster and serve more clients efficiently.

This acquisition signals growing institutional interest in digital asset derivatives and may push other exchanges to expand into regulated U.S. markets, boosting competition and transparency. Kraken plans to introduce innovative derivatives, including tokenized assets, and strengthen its global infrastructure, building on previous acquisitions like NinjaTrader and Crypto Facilities.