Kraken is making waves in the U.S. crypto market. The exchange has acquired Small Exchange from IG Group for $100 million, a strategic move to build a regulated derivatives trading infrastructure in the United States. With this acquisition, Kraken gains control of a CFTC-regulated Designated Contract Market, enabling it to offer futures and margin products domestically.
Why this matters: Co-CEO Arjun Sethi explained that the acquisition creates a unified liquidity system for spot, futures, and margin trading under federal oversight. The platform will manage clearing, risk management, and order matching, reaching standards comparable to the world’s top exchanges.
This is Kraken’s second major acquisition in 2025 aimed at expanding U.S. derivatives operations. Earlier this year, the company purchased NinjaTrader, another platform serving American futures traders, signaling Kraken’s aggressive push into regulated institutional markets.
Crypto derivatives are booming. Institutional participation has driven significant growth in the U.S., with CME Group reporting a 136% surge in average daily volume in Q2 2025, reaching 190,000 contracts compared to the same period last year.
This surge reflects the growing acceptance of regulated crypto products among traditional financial institutions.
Kraken’s acquisition strategy gives it a major competitive edge. The Small Exchange deal provides immediate regulatory infrastructure that would otherwise take years to build from scratch, positioning Kraken to capture market share as demand for compliant derivatives platforms rises.
Regulatory certainty is key.
The CFTC oversight framework provides institutional clients with the confidence they need to trade derivatives safely. As traditional finance players enter crypto markets, this regulatory clarity is becoming an essential differentiator.
What’s next for the industry? Observers expect continued consolidation in U.S. crypto derivatives as exchanges compete for institutional business. Regulatory compliance, liquidity depth, and technology will be the critical factors that attract professional trading firms.
The bottom line:
Kraken isn’t just expanding—it’s strategically positioning itself to lead the U.S. crypto derivatives market. For investors and institutions, this acquisition signals that regulated, high-liquidity crypto trading is moving from niche to mainstream.
