Core Insights - Kraken has acquired Small Exchange for $100 million, enhancing its capabilities in the U.S. derivatives market [1][2] - The acquisition allows Kraken to launch a U.S.-native derivatives product suite and create markets for exchange-listed derivatives under CFTC oversight [2][3] - The deal includes $32.5 million in cash and $67.5 million in stock from Kraken's parent company, Payward [3] Company Strategy - The acquisition is part of Kraken's strategy to connect spot, futures, and margin products within a single regulated liquidity system, aiming to reduce fragmentation and improve performance [4] - Kraken has been actively acquiring futures exchanges, including NinjaTrader for $1.5 billion and Breakout, to enhance its trading capabilities [5][6] - The company is reportedly planning an IPO, with a potential listing on Nasdaq in January 2026 [6] Industry Context - Small Exchange, founded in 2017 and previously part of IG Group, is regulated by the CFTC and offers futures, derivatives, and options trading [1] - IG Group is also entering the crypto space, having received a cryptoasset license from the UK's FCA [7]