Kraken Acquires CFTC-Licensed Exchange in $100M Deal

The $100 million acquisition of Small Exchange marks a pivotal moment in Kraken’s strategic expansion into regulated derivatives markets. As a Designated Contract Market (DCM) licensed by the US Commodity Futures Trading Commission (CFTC), Small Exchange provides Kraken with the regulatory framework necessary to design and operate exchange-listed derivatives markets in the United States. This move represents Kraken’s most significant step yet toward launching a fully US-based derivatives product suite, positioning the exchange to compete more effectively in the world’s largest capital market.

Kraken co-CEO Arjun Sethi emphasized the strategic importance of this acquisition, stating that it ‘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.’ 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, creating a more seamless trading experience for US customers.

This acquisition represents the latest chapter in Kraken’s long-term investment in building a comprehensive global derivatives ecosystem. Since 2019, the company has systematically acquired and developed multiple regulated entities across key markets. The strategy began with the acquisition of Crypto Facilities in the United Kingdom, which operates under Financial Conduct Authority (FCA) oversight and recently launched Europe’s largest regulated crypto futures offering under the MiFID II framework.

Earlier in 2025, Kraken strengthened its US presence through the acquisition of NinjaTrader, a leading futures trading platform that enabled American clients to trade CME-listed cryptocurrency futures alongside spot crypto. The expansion continued in October with the addition of contracts across equities, foreign exchange indices, and commodities such as oil and gold. The Small Exchange acquisition completes Kraken’s regulated derivatives trifecta, giving the company licensed venues in the United States, United Kingdom, and European Union.

The unified trading system now supports six fiat currencies and more than 450 digital and traditional assets operating within a single platform architecture. This integrated approach allows Kraken to offer clients access to diverse asset classes while maintaining regulatory compliance across multiple jurisdictions.

Kraken’s strategic expansion comes amid solid financial performance and impressive growth metrics. The exchange reported $412 million in revenue for the second quarter of 2025, representing an 18% increase from the same period a year earlier, though down 13% from Q1. The quarterly decline was attributed to seasonal weakness and global market uncertainty tied to US tariffs during the period.

Despite adjusted EBITDA slipping 7% to $79.7 million due to slowed trading activity, Kraken demonstrated strong underlying growth. Total exchange volume grew 19% year-over-year to $186.8 billion, while funded accounts surged 37% to 4.4 million. Platform assets showed particularly robust growth, increasing 47% to $43.2 billion. The exchange also gained significant ground in spot trading, with stablecoin-fiat trading volumes jumping from 43% to 68% of total volume.

The company’s growth trajectory was further validated last month when Kraken completed a $500 million funding round at a $15 billion valuation. The self-structured raise was backed by Tribe Capital, co-CEO Arjun Sethi, and other investors, bringing Kraken’s total funding to $527 million as the company prepares for its planned 2026 IPO.