Kraken has taken a major step in its US expansion strategy by acquiring the Small Exchange from IG Group for $100 million.
The Chicago-based Small Exchange is regulated by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM).
This acquisition grants Kraken the authority to design and operate exchange-listed derivatives directly under US oversight, marking a new chapter in the platform’s global derivatives journey.
The purchase allows Kraken to establish a US-native derivatives marketplace, aligning with the country’s strict regulatory standards.
This move is expected to strengthen its role as one of the few trading firms licensed across three major financial jurisdictions: the US, the UK, and the European Union.
Kraken aims for top-level regulated trading under CFTC
Kraken’s co-CEO, Arjun Sethi, explained that the integration of Small Exchange will enable a single regulated liquidity environment connecting spot, futures, and margin products.
This setup minimizes trading fragmentation and latency while increasing transparency.
By combining clearing, risk management, and matching systems under CFTC oversight, Kraken aims to deliver an institutional-grade trading experience similar to global market leaders.
The exchange now supports six fiat currencies and over 450 assets, providing a seamless bridge between traditional and digital markets.
This strategic move enhances collateral movement across jurisdictions, creating an efficient market framework that US traders have long awaited.
With the new infrastructure, Kraken is now positioned to compete with traditional exchanges in both speed and regulatory compliance.
Kraken expands its reach in the US and Europe
The Small Exchange deal follows Kraken’s earlier acquisitions and product expansions.
In 2019, Kraken acquired Crypto Facilities, a UK-based Multilateral Trading Facility, which became a cornerstone for its European derivatives platform.
Earlier in 2025, the exchange also acquired NinjaTrader, enabling access to CME-listed crypto futures for US clients.
These developments form part of Kraken’s long-term plan to build a unified, high-performance derivatives ecosystem.