Kraken Launches US Derivatives Platform After NinjaTrader Acquisition

Kraken, a leading crypto exchange, has introduced a derivatives platform specifically designed for US traders. This new platform, Kraken Derivatives US, offers access to CME-listed cryptocurrency futures through the Kraken Pro platform, thereby broadening Kraken’s service offerings and enhancing the availability of institutional-grade trading tools for its users.

The launch of Kraken Derivatives US comes on the heels of Kraken’s $1.5 billion acquisition of NinjaTrader, a significant merger in the crypto industry. NinjaTrader, renowned for its expertise in retail futures brokerage, particularly in equity derivatives and commodity markets, has been seamlessly integrated into Kraken’s operations. This acquisition has paved the way for Kraken to expand its offerings across both the Kraken and NinjaTrader platforms, with future plans to include stocks, options, and prediction markets.

Kraken Derivatives US is regulated by the Commodity Futures Trading Commission (CFTC), ensuring adherence to regulatory standards. The platform has initially been launched in several regions, including Vermont, West Virginia, North Dakota, Mississippi, and Washington, D.C. This phased rollout allows Kraken to test and refine its services before a wider launch.

The introduction of Kraken Derivatives US aligns with the broader expansion of the crypto derivatives market, which has seen substantial growth since the launch of Bitcoin futures contracts by CME Group and CBOE in late 2017. Bitcoin derivatives have been at the forefront of this surge, with open interest exceeding $70 billion in the first half of the year, indicating a rising interest and investment in this market segment.

The growth of the crypto derivatives market extends beyond centralized exchanges. Decentralized exchanges (DEXs) are also playing a pivotal role, with projections suggesting that DEX derivatives volumes could reach $3.5 trillion by 2025. This growth is fueled by the increasing popularity of perpetual contracts, which have no expiration date and have experienced a 150% increase in volume over the past year.

Kraken’s foray into the US crypto derivatives market is a strategic move that positions the exchange to capitalize on the growing demand for institutional-grade trading tools. By leveraging its acquisition of NinjaTrader and expanding its product suite, Kraken is well-positioned to compete in the rapidly evolving crypto derivatives landscape. The launch of Kraken Derivatives US underscores Kraken’s commitment to innovation and its efforts to provide a comprehensive trading experience for its users.