Crypto exchange Kraken has revealed that it has acquired Small Exchange, a CFTC-licensed Designated Contract Market (DCM), for $100 million from IG Group. This acquisition enhances Kraken’s global reach and regulatory framework, positioning it alongside its existing operations in the UK, European Union, and the US.

Expanding US Derivatives Offerings

As per the press release, the acquisition is a critical milestone for Kraken’s plan to introduce a comprehensive US-based derivatives product line aimed at strengthening its foothold in the major capital market.

The exchange has secured the DCM license which empowers it to create and manage exchange-listed derivatives markets in the US under CFTC oversight.

This move follows Kraken’s earlier strategic actions in 2025, including the acquisition of NinjaTrader, enabling US clients to trade CME-listed cryptocurrency futures along with spot crypto. Recently, Kraken has broadened its offerings to cover more contracts across equities, foreign exchange indices, and commodities.

The Small Exchange acquisition is part of Kraken’s ongoing investment strategy in the derivatives market, which began in 2019 with acquisitions of multiple regulated entities.

Arjun Sethi, co-CEO of Kraken, commented on the acquisition:

“This step connects spot, futures, and margin products inside a single regulated liquidity system, reducing fragmentation and enhancing performance.”

Notable Developments

In Q2 2025, Kraken reported revenue growth to $412 million, an 18% increase year-over-year, although its adjusted EBITDA appeared lower at $79.7 million due to seasonal fluctuations and market uncertainties. Overall exchange volume surged by 19% year-over-year, totaling $186.8 billion, and the platform now maintains 4.4 million funded accounts.

In a recent funding round, Kraken raised $500 million at a $15 billion valuation, further solidifying its market presence. This totalled a cumulative $527 million raised overall.