Cryptocurrency exchange Kraken has expanded its derivatives trading offering to its home territory through a new acquisition.
Kraken has acquired Small Exchange, a designated contract market maker (DCM), from trading firm IG Group for $100 million, the company announced on Thursday.
With DCM licensed by the US Commodity Futures Trading Commission (CFTC), small exchanges are allowed derivatives in the US.
“Under CFTC oversight, Kraken can now integrate clearing, risk, and matching in an environment that meets the same standards as the world’s largest exchange,” said Kraken co-ceo Arjun Sethi.
Unified crypto trading platform
The small exchange acquisition advances Kraken’s mission to build a unified trading platform, creating a foundation for a “new generation of US derivatives markets.”
The CFTC-licensed DCM helps Kraken Connect spot, futures and margin trading products within a single regulated liquidity system, reducing fragmentation and increasing the speed of trade execution, Sethi said.
The move is also part of a larger effort to target global derivatives infrastructure, including Kraken’s derivatives platforms in the United Kingdom and the European Union.
“Together, these elements create a network that moves collateral in real time, Nets exposure to constituents, and reduces capital efficiencies that have long held back US entrepreneurs,” noted the co-CEO.
Kraken Bets on Derivatives Markets
Kraken’s small exchange acquisition is not Kraken’s first foray into US derivatives markets. The exchange A derivatives platform has been launched for US traders in July to a $1.5 billion acquisition of futures trading platform Ninjatrader.
Announced in March 2025, the acquisition of Ninjatrader enables Kraken to offer Chicago Mercantile Exchange (CME)-listed crypto futures, alongside Spot’s Crypto products in a unified interface.
The expansion of derivatives products aligns with Kraken’s multi-year commitment to the derivatives markets, including the acquisition of UK-based UK-based facilities in 2019.
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In May 2025, Kraken was launched Derivatives Trading in the European Union In compliance with the local framework related to crypto derivatives, the markets Directive (MIFID II).
The trend of crypto derivatives is on the rise
Kraken’s continued efforts to create a new generation of crypto derivatives come amid a derivatives segment holding momentum against trading Centralized exchanges (CEX).
While spot trading volumes have already been reported plummeted by nearly 22% In the second quarter of 2025, derivatives are more resilient, experiencing a fall of almost 4% and covering $ 20.2 trillion.
According to Mark Jennings, head of Europe at Winklevoss’s Crypto Exchange Gemini, the world The Derivatives Market has exploded in recent months and is expected to hit $23 trillion by the end of 2025.
With derivatives emerging as a major crypto trend in 2025, major derivatives platforms and CEX are rushing to expand their products.
In early October, CME Group said it would expand its services to offer Always-on trading for crypto derivatives Starting in 2026.
Coinbase, the largest US crypto exchange by trading volumes, is also active Expanding on derivatives with derivative acquisition in May.
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