Kraken Buys Small Exchange to Boost US Derivatives Market

Kraken Secures US Derivatives Market With Small Exchange Buy

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 16, 2025

Key Takeaways

Kraken acquired Small Exchange for $100 million and gained a CFTC-regulated platform to expand its US derivatives trading offerings;
The deal allows Kraken to offer listed futures products in the US without building a platform from the ground up;
Integrating Small Exchange supports Kraken’s aim to unify spot, margin, and futures trading under one regulated system.

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Kraken $651.8M has taken a step to grow its US derivatives business by acquiring Small Exchange, a US-regulated futures market.

The purchase, worth $100 million, was made from IG Group, a financial services company.

This deal enables Kraken to expand its trading product offerings while adhering to US regulatory guidelines.

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Small Exchange is already registered with the US Commodity Futures Trading Commission (CFTC) as a designated contract market. By acquiring it, Kraken can now operate a regulated venue that offers exchange-listed derivatives.

This enables the company to expand its US product line without the need to build a platform from scratch.

Arjun Sethi, Kraken’s co-CEO, explained that the addition of Small Exchange helps bring multiple parts of the trading process, such as order matching, risk management, and clearing, under one roof.

According to him, this setup matches the structure used by some of the biggest exchanges in the world. It also supports Kraken’s goal of creating a single platform where different types of trading, spot, futures, and margin, can happen in a regulated space.

Kraken already runs derivatives platforms in both the United Kingdom and the European Union. With a licensed US venue, the company can better connect its international trading systems.

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