- The deal comprises $32.5 million in cash and $67.5 million in Payward shares.
- The acquisition gives Kraken CFTC-licensed access to the U.S. derivatives market.
- Kraken strengthens its position ahead of a planned public listing in early 2026.
Kraken has acquired the U.S.-licensed Small Exchange from IG Group in a $100 million transaction, furthering the crypto exchange’s push into regulated derivatives trading.
The purchase, which consists of $32.5 million in cash and $67.5 million in Payward stock—Payward being Kraken’s parent company—enables the exchange to offer perpetual futures and round-the-clock trading directly to U.S. customers under regulatory oversight.
Kraken gains CFTC-licensed access to the U.S. derivatives market
The Small Exchange is registered with the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM).
That registration allows Kraken to operate within the U.S. regulatory framework and offer futures trading without routing orders through third-party venues.
The acquisition lets the firm consolidate clearing, risk management and matching functions inside a single environment that meets the same standards applied to major global exchanges.
This move is a significant milestone in Kraken’s expansion strategy.
The company already holds comparable regulatory approvals in the U.K. and EU and recently acquired retail futures broker NinjaTrader for $1.5 billion.
That transaction expanded Kraken’s ability to offer CME-listed futures across crypto, equities and commodities, growing its global derivatives footprint.
IG Group secures proceeds and ongoing collaboration
For IG Group, the sale of Small Exchange represents a strategic exit from its U.S. derivatives business.
The $100 million deal is expected to yield an after-tax profit of £73.3 million and to increase IG’s regulatory capital by £22.7 million.
Despite divesting ownership, IG will continue to collaborate with Kraken under a partnership agreement that preserves access to product distribution opportunities tied to the exchange’s derivatives offering.
The decision aligns with IG’s broader strategy to focus on growth in other regions.
IG has also bolstered its crypto capabilities by acquiring Independent Reserve, an Australian cryptocurrency exchange, and obtaining a cryptoasset license from the U.K. Financial Conduct Authority.
Move comes ahead of planned public listing
The acquisition arrives as Kraken prepares for a public offering expected in early 2026.
Owning a U.S.-licensed futures exchange could improve the company’s positioning with investors and regulators in the run-up to its listing.
U.S. regulatory dynamics for crypto firms have also shifted under the current administration, with several enforcement actions—including some involving Kraken—either dropped or paused while new digital asset rules are developed.