Kraken Buys Small Exchange in $100M U.S. Derivatives Push
Kraken acquires Small Exchange for $100M, strengthening its position in the U.S. derivatives market.
- Kraken acquires Small Exchange for $100 million from IG Group.
- Deal expands Kraken’s U.S. derivatives market presence.
- Kraken now holds derivatives licenses in the U.S., U.K., and E.U.
In a significant development, crypto exchange Kraken has announced the $100 million acquisition of Small Exchange, a Chicago-based derivatives platform regulated by the U.S. Commodity Futures Trading Commission (CFTC). The deal, made with IG Group, signals Kraken’s aggressive expansion into the U.S. crypto derivatives market.
The Small Exchange is a Designated Contract Market (DCM), meaning it’s authorized to offer futures products to retail and institutional clients. With this acquisition, Kraken gains a fully regulated venue to offer derivatives products in the U.S.—a market traditionally hard to crack due to regulatory hurdles.
Why This Acquisition Matters
Kraken’s purchase of Small Exchange is not just about expansion—it’s about gaining regulatory strength. By owning a CFTC-regulated entity, Kraken positions itself as a serious player in the U.S. crypto derivatives space. It also differentiates itself from other platforms that face ongoing scrutiny from U.S. regulators.
This deal makes Kraken one of the few global platforms to hold derivatives licenses in three major jurisdictions: the United States, the United Kingdom, and the European Union. This broader licensing allows Kraken to offer a consistent and legally compliant trading experience to customers worldwide.
Kraken’s Global Derivatives Ambitions
Kraken’s acquisition of Small Exchange complements its existing derivatives services offered in other regions. The platform already provides futures trading in Europe via its Kraken Futures arm and holds a U.K. derivatives license. With the U.S. license now in hand, Kraken is clearly working to become a global derivatives powerhouse.
By acquiring a CFTC-regulated exchange, Kraken may also be positioning itself to offer more complex products and serve institutional clients in the U.S. market. This could include crypto futures and options that meet regulatory standards, setting the stage for more traditional investors to enter the space.
