Kraken Acquires Small Exchange for $100 Million

Cryptocurrency exchange Kraken announced the completion of its $100 million acquisition of Small Exchange, a U.S.-based, CFTC-regulated Designated Contract Market (DCM) for derivatives trading, from IG Group.

The deal, structured as $32.5 million in cash and $67.5 million in Kraken parent company Payward stock, positions Kraken to launch a fully onshore U.S. derivatives platform, integrating spot crypto, futures, and margin trading under unified CFTC oversight.

This move builds on Kraken’s earlier $1.5 billion purchase of futures platform NinjaTrader in March 2025, aiming to create a “high-performance trading environment” with reduced latency and enhanced risk management for institutional and retail users.

Kraken co-CEO Arjun Sethi described it as laying the groundwork for “a new generation of United States derivatives markets designed for scale, transparency, and efficiency.” IG Group, which acquired Small Exchange in 2023, called the sale a “significant return” while shifting focus to its own crypto expansions in the UK and Australia.

Kraken’s $100M acquisition of Small Exchange strengthens its U.S. presence by enabling a CFTC-regulated platform for crypto spot, margin, and futures trading.

It enhances retail and institutional access to derivatives, improves liquidity, and aligns with regulatory trends, potentially boosting adoption and market efficiency for assets like BTC and ETH.

Both Coinbase and Kraken have aggressively pursued derivatives expansion in 2025 amid surging institutional demand for regulated crypto tools.

Coinbase’s approach emphasizes massive scale through high-value acquisitions and global product diversification, positioning it as a “one-stop shop” for derivatives.

Coinbase International Exchange: 106 perpetual futures listings up from 15 in 2024; $185B+ monthly volumes, $60B open interest post-Deribit. Expanding to altcoins (e.g., SUI futures Oct 20) and hybrids like Mag7 + Crypto Equity Index Futures (Sept 22).

Kraken focuses on U.S.-centric integration, leveraging smaller, targeted buys to unify spot and futures under CFTC oversight for retail and institutional efficiency.

Coinbase leads in global dominance and options volume, ideal for institutions seeking breadth. Kraken excels in U.S.-regulated unification and cost-efficiency, appealing to retail/pro traders wanting seamless onshore access.

Both align with 2025 trends toward regulated hybrids, but Coinbase’s bolder M&A $3B+ spent gives it an edge in market share, while Kraken’s $1.6B investments prioritize practical U.S. integration.

Backpack and Superstate Partner to Launch Tokenized Equities

Backpack Exchange—a Solana-based crypto platform founded by former FTX executives—has partnered with blockchain finance firm Superstate to integrate native, SEC-registered tokenized U.S. equities into its trading venue.

Through Superstate’s Opening Bell platform, eligible non-U.S. users can now trade, buy, sell, and cross-margin real shares of public companies not synthetic wrappers onchain, alongside crypto and stablecoins, with full shareholder rights including dividends and voting.

Unlike custodial products like Kraken’s xStocks, these tokens use the same CUSIP identifiers as traditional NYSE or Nasdaq shares and are issued via Superstate’s SEC-registered transfer agent for direct onchain settlement.

Backpack CEO Armani Ferrante highlighted the partnership as advancing “the future of finance is the future of crypto,” positioning the exchange as the first centralized venue for issuer-backed, compliant tokenized stocks.

Initial supported stocks, including recent examples like Galaxy Digital’s GLXY shares, will roll out soon, amid Backpack’s broader push into regulated real-world assets following its acquisition of FTX’s EU arm earlier this year.