Kraken Boosts US Presence by Buying Small Exchange for $100M

Crypto trading platform Kraken has beefed up its US derivatives standing by shelling out $100 million to buy Small Exchange, a Chicago-based Designated Contract Market (DCM) under the watchful eye of the Commodity Futures Trading Commission (CFTC). This purchase from London’s IG Group is a big move in Kraken’s plan to set up a regulated onshore trading setup in the United States.

Kraken Moves to Unify U.S. Crypto Trading Under CFTC Oversight

The deal, worth $32.5 million in cash and $67.5 million in Payward‘s stock (Kraken’s parent company), gives the exchange a license to run US-based derivatives markets under direct CFTC oversight. This fits into Kraken’s bigger plan to bring together spot, futures, and margin products in one system that is compliant with regulations.

Arjun Sethi, Kraken’s co-CEO, said this purchase paves the way for a new age of derivatives markets in the United States. He pointed out that putting different trading services into one pool of money would get rid of market splitting and make things clearer, faster, and more effective. Sethi believes this new setup will be as good as top global exchanges while still following all the rules.

Market watchers think this step could make Kraken a tough rival to Coinbase in their fight to lead the regulated crypto derivatives market. Coinbase has set its sights on growing worldwide, while Kraken has zeroed in on creating a single, rule-based system in the US.

Speculation Rises Over Kraken’s Potential Move into Prediction Markets

This buyout comes after Kraken bought NinjaTrader earlier in 2025, a big US futures trading platform that lets American users trade CME-listed crypto futures. Since then, Kraken has grown its product line to include deals in stocks, forex indices, and raw materials like oil and gold. The company also runs licensed derivatives venues in the UK and the EU, covering over 450 digital and standard assets across six main currencies.

Besides expanding its derivatives products, the Small Exchange deal could open doors to new trading options under CFTC rules. Some market watchers think Kraken might look into regulated prediction markets, but the company has not said anything about this yet.With this purchase, Kraken keeps up its years-long push to build a top-notch market setup that brings better efficiency, security, and liquidity to digital asset trading. This step shows the company’s drive to close the gap between old-school finance and the new world of regulated crypto derivatives.