Kraken has announced the acquisition of Small Exchange, a CFTC-regulated designated contract market maker, for $100 million.
This move allows Kraken to consolidate its presence in the US derivatives sector and enhance its ability to offer regulated exchange-listed derivatives products.
Building a unified trading platform
The purchase of Small Exchange enables Kraken to connect spot, futures, and margin trading products within a single, regulated liquidity environment.
Kraken co-CEO Arjun Sethi emphasized the significance of this integration:
“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.”
This acquisition builds on Kraken’s global derivatives infrastructure, complementing its platforms in the United Kingdom and European Union.
Previous US derivatives moves
In July, Kraken entered the US derivatives market by acquiring NinjaTrader for $1.5 billion, allowing it to offer Chicago Mercantile Exchange (CME)-listed bitcoin futures alongside spot bitcoin products.
The company’s multi-year strategy also includes the 2019 acquisition of UK-based Crypto Facilities, and the launch of EU derivatives trading in May 2025 under MiFID II regulatory standards.
Derivatives market growth
The expansion comes as derivatives trading maintains resilience amid declining spot trading volumes on centralized exchanges.
In Q2 2025, spot volumes dropped by 22%, while derivatives saw a smaller decrease of 4%, totaling $20.2 trillion.
Industry leaders expect the global derivatives market to reach $23 trillion by year-end, as platforms like CME Group and Coinbase continue to expand their offerings.
