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- Kraken acquires CFTC-approved Small Exchange for $100M.
- The deal enables onshore crypto derivatives trading in the U.S.
- It aligns with Kraken’s broader growth and IPO strategy for 2026.
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Kraken has taken a major step toward expanding its U.S. presence by acquiring Small Exchange, a CFTC-licensed Designated Contract Market (DCM), in partnership with IG Group for $100 million. The deal gives Kraken direct regulatory access to offer U.S.-based derivatives trading — a move that positions it closer to Wall Street’s deep liquidity and regulatory framework.
According to co-CEO Arjun Sethi, the acquisition reflects Kraken’s long-term goal of building a unified trading environment that connects spot, futures, and margin products under one regulated platform. The new setup, he added, is designed for “scale, transparency, and efficiency.”
Building a Fully Onshore Derivatives Venue
With Small Exchange now part of its portfolio, Kraken can legally operate a CFTC-approved derivatives market in the U.S., integrating risk management, clearing, and matching within a single ecosystem. This gives the exchange a distinct advantage: the ability to deliver offshore-grade performance within the boundaries of American regulation.
Kraken’s leadership sees this as a defining moment in the evolution of the U.S. crypto derivatives market — one that brings institutional-grade trading closer to domestic users while reducing fragmentation and latency in funding flows.
Expanding Product Suite Ahead of Potential IPO
The Small Exchange deal caps a series of product launches and strategic moves by Kraken in recent months. The exchange recently rolled out its “Perps” perpetual trading product, enabling users to speculate on crypto futures through price movement predictions. It also launched xStocks across Europe, allowing traders to buy digital versions of major equities like Tesla and Nvidia.
Also Read: Pump.Fun Set to Raise $600M in PUMP Token Sale on Bybit, Kraken, KuCoin & Others
These expansions align with Kraken’s reported plans for a potential IPO in 2026, signaling a broader effort to strengthen its market credibility and diversify revenue streams.
A Strategic Play for U.S. Market Leadership
By acquiring Small Exchange, Kraken has established a direct bridge to America’s capital markets — a move that could redefine its position in global crypto trading. It’s a signal to regulators, investors, and competitors alike that the exchange is serious about operating within the U.S. framework while still delivering the innovation and speed that define its brand.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
