16.10.2025 23:47
Drawing from internet sources, Kraken, the well-known cryptocurrency exchange, is making significant strides in the derivatives market within the United States. Through a recent acquisition, the company is poised to offer a new wave of derivative products to its American customer base.
In a strategic move valued at $100 million, Kraken has acquired Small Exchange from IG Group, according to a company statement released on Thursday. This acquisition brings with it a valuable asset: a designated contract market maker (DCM) license, authorized by the US Commodity Futures Trading Commission (CFTC). Possessing this DCM license empowers Kraken to establish markets for exchange-listed derivatives within the United States.
Arjun Sethi, co-CEO of Kraken, emphasized the importance of this development, stating that with CFTC oversight, Kraken can now unify clearing, risk management, and matching processes within a single environment, aligning with the standards of the world's foremost exchanges. This acquisition furthers Kraken's ambition to construct a cohesive trading platform, setting the stage for the emergence of a new breed of derivatives markets in the U.S.
Furthermore, this CFTC-licensed DCM will enable Kraken to integrate spot, futures, and margin trading products into one seamlessly regulated liquidity system, Sethi noted. By reducing fragmentation and accelerating trade execution, Kraken aims to improve the trading experience for its users. Kraken's efforts also extend to the establishment of a global derivatives infrastructure, including its existing derivatives platforms in the United Kingdom and the European Union.
This acquisition is not Kraken's first foray into the US derivatives space. Earlier this year, in March 2023, Kraken acquired NinjaTrader for $1.5 billion, a futures trading platform that enabled Kraken to offer crypto futures listed on the Chicago Mercantile Exchange (CME) alongside spot crypto products, all within a unified interface. According to Arjun Sethi, this expansion into derivatives offerings reflects Kraken's long-term dedication to these markets.
