- Kraken is set to acquire NinjaTrader for $1.5 billion to expand its futures and derivatives trading services.
- The deal helps Kraken bypass US regulations by using NinjaTrader’s Futures Commission Merchant license.
- Kraken’s global expansion continues with plans to support NinjaTrader’s entry into the UK and Australian markets.
Kraken is finalizing its acquisition of NinjaTrader, a major futures trading platform. The deal is worth $1.5 billion. NinjaTrader will become a subsidiary of the US-based cryptocurrency exchange. Sources indicate Kraken could announce the acquisition before the end of the week.
Expanding Into Derivatives and Futures
The move shows Kraken’s plan to expand into derivatives and crypto futures. The exchange faces regulatory challenges in the US. It aims to use NinjaTrader’s Futures Commission Merchant (FCM) license to offer new trading options. This approach helps Kraken bypass legal barriers that limit its growth.
Kraken has strong financial backing for this expansion. The exchange generated over $1.5 billion in revenue last year. It doubled its profits during the same period. Acquiring NinjaTrader will boost its trading services. It will also introduce Kraken to a larger market. NinjaTrader, launched in 2003, has over 1.8 million retail investors actively trading futures contracts.
Global Expansion Strategy
The deal supports Kraken’s global expansion strategy. NinjaTrader plans to enter the UK and Australian markets. Kraken holds an Electronic Money Institution license from the UK’s Financial Conduct Authority.
This approval may help NinjaTrader expand into the UK. Kraken previously secured a Markets in Financial Instruments Directive license. This license allows it to offer crypto derivatives in the European Economic Area.
Strengthening Market Position
Earlier this year, Kraken acquired a company in Cyprus. This strengthened its position in the European derivatives market. The firm also reintroduced cryptocurrency staking services for US customers. It has explored offering US-listed stocks and exchange-traded funds through Kraken Securities in the US and UK.
The US Securities and Exchange Commission recently dropped its lawsuit against Kraken. Acting Chair Mark Uyeda now leads the SEC. The government agency plans to reduce its focus on enforcing cryptocurrency regulation.
The amended regulatory framework presents potential opportunities for Kraken to accelerate its future trading segments. The purchase of NinjaTrader helps Kraken improve its standing in the market. This partnership represents a pivotal execution of Kraken’s future business plans.
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