Kraken, a leading crypto exchange, has acquired Small Exchange, a regulated derivatives trading platform, for $100 million. The deal expands Kraken’s position in the U.S capital market and supports the development of a regulated onshore derivatives product suite.
According to Kraken’s October 16 announcement, this acquisition is part of its plan to integrate trading operations and improve platform efficiency. The acquisition also gives Kraken a Designated Contract Market (DCM) license under the oversight of the Commodity Futures Trading Commission (CFTC), allowing it to design and operate exchange-listed derivatives in the United States.
Arjun Sethi, Kraken’s co-CEO, explained the broader vision behind the purchase, saying, “Kraken’s acquisition of a CFTC regulated Designated Contract Market creates the foundation for a new generation of United States derivatives markets. It is designed for scale, transparency, and efficiency.”
Expanding global infrastructure
Moreover, this acquisition extends Kraken’s global infrastructure, which now includes regulated derivatives venues in the U.K., the European Union, and the U.S. Consequently, the system now spans six fiat currencies and more than 450 digital and traditional assets within one architecture.
Earlier this year, Kraken also acquired NinjaTrader, a leading U.S. futures platform, enabling users to trade CME-listed cryptocurrency futures. Additionally, Kraken broadened its offering to include equities, FX indices, and commodities such as oil and gold.
Institutional demand drives U.S. derivatives growth
The U.S. derivatives market is growing fast, mainly because more big investors are getting involved. According to CME Group, crypto derivatives trading jumped 136% in the second quarter of 2025, averaging about 190,000 contracts per day. Overall trading activity also hit a record 30.2 million contracts daily, up 16% from last year.
June kept the pace going with 25.7 million contracts traded daily. Crypto trading jumped 133%, led mainly by Ether and Micro Ether futures, and metals, including Platinum and Micro Gold, also touched record highs, reflecting fervent market engagement across asset classes.
Kraken’s $100 million move strengthens its foothold in the U.S. crypto market, giving traders and institutions smoother, safer access to global liquidity under clear regulatory oversight.