Kraken acquires CFTC-regulated Small Exchange for $100M

Kraken has acquired Small Exchange, a U.S. Commodity Futures Trading Commission-licensed Designated Contract Market, from IG Group for $100 million, the company announced.

The deal positions Kraken to offer fully regulated onshore derivatives trading in the United States, extending its reach into the world’s largest capital market. The acquisition gives Kraken the regulatory foundation to design and operate U.S.-listed derivatives under direct CFTC oversight.

Kraken co-CEO Arjun Sethi said the purchase marks “the foundation for a new generation of United States derivatives markets,” describing the move as an effort to consolidate spot, futures, and margin trading into one regulated ecosystem. The integration aims to reduce market fragmentation and bring high-performance, low-latency trading onshore — capabilities often available only in offshore venues.