Kraken, a well-established cryptocurrency exchange, has officially entered the proprietary trading space through the acquisition of Breakout, a crypto-native proprietary trading firm. The acquisition, which went into effect on September 1, 2025, marks a significant expansion of Kraken's product suite, specifically aimed at advanced traders.
Breakout, founded in 2023, is known for its evaluation-based model, which provides skilled traders with the opportunity to manage funded accounts and earn payments by implementing successful strategies. Through Breakout, qualified traders can access up to $200,000 in notional capital. To qualify, traders must purchase and successfully complete a rigorous evaluation that assesses their risk discipline, strategy consistency, and real-market decision-making abilities under pressure. They also need to maintain performance above predefined drawdown limits. Traders who meet the requirements receive a funded account and can retain up to 90% of the profits they generate, with payments made directly to them on demand.
Arjun Sethi, co-CEO of Kraken, emphasized that the acquisition aligns with Kraken's commitment to rewarding demonstrated performance over pedigree, allowing the exchange to allocate capital based on proven skills. Sethi stated that the Breakout model acts as "a filter for scalable signal". Alex Miningham, co-founder and CEO of Breakout, noted that Breakout gives traders a performance-based starting point, while Kraken provides the scale and tools necessary for growth. The integration aims to create a unified ecosystem that supports traders throughout their journey, from education to independent capital deployment.
The move allows Kraken to combine its exchange infrastructure with Breakout's unique trading model. Over time, Breakout will be integrated directly into the Kraken Pro platform, providing seamless access for eligible users. Breakout offers traders the opportunity to develop strategies across a selection of more than 50 crypto pairs, with up to 5x leverage available on BTC and ETH contracts.
This acquisition is the latest in a series of strategic moves by Kraken to expand its services and cater to a broader range of traders. In May 2025, Kraken announced its plans to acquire NinjaTrader, a futures trading platform, for $1.5 billion. Kraken also acquired Capitalise.ai, a no-code trading automation platform. In Europe, Kraken launched crypto derivatives under a Cyprus license.
Kraken, established in 2011, is one of the longest-standing cryptocurrency platforms. It serves over 15 million clients across nearly 200 countries. The exchange offers trading in more than 450 digital assets and traditional assets, including U.S. futures, U.S.-listed stocks and ETFs, and six national currencies.
