Cryptocurrency platform Kraken announced it has acquired Small Exchange, a US-licensed Designated Contract Market (DCM), from IG Group for $100 million.
The acquisition allows Kraken to offer exchange-traded derivatives under the oversight of the Commodity Futures Trading Commission (CFTC).
The move is part of Kraken’s broader strategy to develop a unified trading platform that integrates spot, futures, and margin products within a regulated liquidity system.
Kraken said the acquisition will help reduce market fragmentation and trading latency while providing onshore access and performance comparable to major financial exchanges.
Through Small Exchange, Kraken can now integrate clearing, risk management, and matching functions under CFTC supervision, meeting regulatory standards required for US derivatives markets.
The acquisition complements Kraken’s $1.5 billion purchase of trading platform NinjaTrader earlier in 2025, expanding its derivatives offerings.
“This step connects spot, futures, and margin products inside a single regulated liquidity system, reducing fragmentation, lowering funding latency, and bringing onshore the kind of access and performance that has mostly existed offshore,” Kraken co-CEO Arjun Sethi said in a statement.
“Under CFTC oversight, Kraken can now integrate clearing, risk, and matching into one environment that meets the same standards as the largest exchanges in the world.”