Kraken, a major player in the cryptocurrency exchange world, is making significant moves to solidify its position in the U.S. derivatives market, potentially setting the stage for a new era of regulated crypto trading. The exchange's recent acquisition of Small Exchange, a Commodity Futures Trading Commission (CFTC)-licensed designated contract market (DCM), for $100 million, marks a pivotal step in this direction. This acquisition provides Kraken with the regulatory foundation needed to offer a full suite of U.S.-based derivatives products.
This strategic move is not an isolated event but rather the latest in a series of expansions aimed at broadening Kraken's reach and offerings. In March 2025, Kraken acquired NinjaTrader, a retail futures trading platform, for $1.5 billion. This acquisition was intended to extend Kraken's reach beyond digital assets, integrating it into multiple asset classes and attracting a wider user base. Furthermore, in July 2025, Kraken launched Kraken Derivatives US, a U.S.-regulated derivatives offering powered by NinjaTrader, enabling U.S. clients to trade cryptocurrency futures alongside its existing spot market.
The acquisition of Small Exchange is particularly significant because it grants Kraken a DCM license, which is a critical regulatory approval that allows the exchange to directly offer exchange-listed derivatives, including futures, options, and potentially event contracts, to U.S. customers. A DCM license requires adherence to 23 core principles set by the CFTC, ensuring market manipulation prevention and fair trading rules, mirroring the standards of established U.S. exchanges like the Chicago Mercantile Exchange (CME). Kraken co-CEO Arjun Sethi emphasized that this acquisition "creates the foundation for a new generation of United States derivatives markets". He further explained that it connects spot, futures, and margin products inside a single regulated liquidity system, reducing fragmentation and lowering funding latency.
This acquisition also positions Kraken to potentially enter the U.S. prediction market, potentially competing with existing platforms like Polymarket and Kalshi. The move aligns with Kraken's broader strategy to expand its presence across the world's largest capital markets. With regulated derivatives venues now in the United States, the United Kingdom, and the European Union, Kraken can facilitate trading across six fiat currencies and over 450 digital and traditional assets.
Kraken's expansion into the derivatives market comes at a time when derivatives trading is outpacing spot trading across centralized exchanges. While spot volumes dropped roughly 22% in the second quarter of 2025, derivatives trading only declined by about 4%, reaching $20.2 trillion globally. Analysts project that total derivatives volume could surge to $23 trillion by the end of 2025, reflecting growing institutional adoption and evolving regulatory clarity in the United States.
The company's aggressive expansion is supported by strong financial performance. In the second quarter of 2025, Kraken reported $412 million in revenue, an 18% increase year-over-year, with trading volume reaching $186.8 billion and customer assets on the platform growing 47% to $43.2 billion. These figures demonstrate Kraken's growing influence and its ability to capitalize on the increasing demand for crypto-related financial products.
Kraken's strategic acquisitions and focus on regulatory compliance signal its ambition to become a dominant force in the U.S. crypto derivatives landscape. By securing the necessary licenses and infrastructure, Kraken is laying the groundwork for institutional-grade markets as the crypto industry matures.
