- The deal includes $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, as the crypto exchange accelerates its push into regulated derivatives trading.
The acquisition, which comprises $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 provide futures trading without routing activity through third‑party marketplaces.
The move will enable the exchange to integrate clearing, risk management, and matching services in a single environment that meets the same standards applied to major global exchanges.
This purchase represents a significant step in Kraken’s expansion strategy.
The company already holds comparable regulatory permissions in the U.K. and EU and recently acquired retail futures trading platform NinjaTrader for $1.5 billion.
That deal allowed Kraken to offer CME‑listed futures across crypto, equities, and commodities, broadening its global derivatives footprint.
IG Group secures proceeds and ongoing partnership
For IG Group, the sale of the Small Exchange marks a strategic exit from its U.S. derivatives operations.
The $100 million transaction is expected to generate an after‑tax gain of £73.3 million and 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 product distribution opportunities tied to the exchange’s derivatives offerings.
The decision aligns with IG’s broader objective to focus growth efforts in other markets.
The company recently bolstered its crypto capabilities by acquiring Independent Reserve, an Australian crypto exchange, and securing a crypto asset license from the U.K. Financial Conduct Authority.
Move comes ahead of planned public listing
Kraken’s acquisition arrives as the exchange prepares for a planned public listing expected in early 2026.
Owning a U.S.‑licensed futures exchange could help position the company more favorably with investors and regulators ahead of the IPO.
U.S. regulatory conditions for crypto firms have become somewhat more flexible under the current administration, and several enforcement actions—including some involving Kraken—have been dropped or paused while new rules for the digital asset sector are developed.