Kraken To Offer Futures And Derivatives Following Major $1.5 Billion Acquisition

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Kraken, one of the leading cryptocurrency exchanges, has announced its acquisition of retail futures trading platform NinjaTrader for a substantial $1.5 billion. This move marks Kraken’s entry into the US futures and derivatives market, enabling the exchange to broaden its offerings and tap into more traditional financial sectors.

What NinjaTrader Brings To Kraken’s Operations

NinjaTrader, which is primarily backed by Long Ridge Equity Partners, is registered as a Futures Commission Merchant (FCM) with the US Commodity Futures Trading Commission (CFTC). This registration is crucial, as it allows NinjaTrader to facilitate futures trading legally in the US. 

The acquisition, which is subject to certain purchase price adjustments, is expected to close in the first half of 2025, according to statements from the US-based crypto exchange Kraken made earlier this week.

According to Bloomberg, the integration of NinjaTrader into the crypto exchange’s operations is expected to accelerate the company’s plans for expanding into equities trading and payment solutions. Founded in 2003, NinjaTrader has established itself as a major provider of futures trading tools, serving nearly two million users.

Kraken’s co-chief executive officer, Arjun Sethi, emphasized the significance of this acquisition, stating, “This transaction is the first step in our vision of an institutional-grade trading platform where any asset can be traded, anytime.”

Easing Pressures Ahead Of Public Listing

Per Bloomberg, Kraken plans to leverage its existing licenses across the UK, Europe, and Australia to accelerate NinjaTrader’s expansion into these regions, allowing the platform to reach a broader audience. 

Despite Kraken’s recent acquisition, NinjaTrader will reportedly continue to operate as a standalone business, maintaining its brand identity and operational independence.

This strategic move occurs against a backdrop of changing regulatory dynamics in the US under President Donald Trump, which is supporting a more pro-crypto environment with key changes in top positions of the country’s regulatory bodies.

Kraken, officially known as Payward Inc., is preparing for a public offering as early as the first quarter of next year, buoyed by what many perceive as a more favorable regulatory climate. 

The company has navigated a challenging landscape in recent years, particularly under the Biden Administration, which some major crypto firms, including Kraken, have accused of targeted enforcement actions.

Despite this, in 2023 Kraken settled a case with the US Securities and Exchange Commission (SEC) and recently had another case dropped by the agency, concluding without any charges or penalties. 

When writing, the market’s leading cryptocurrency, Bitcoin (BTC), trades at $83,780, recording losses of up to 13% in the monthly time frame.

Featured image from DALL-E, chart from TradingView.com 

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