Oct 16 (Reuters) -

Crypto heavyweight Kraken said on Thursday it has acquired

futures exchange Small Exchange from IG Group for $100 million,

paving the way to launch a fully U.S.-based derivatives suite.

Small Exchange is a U.S. Commodity Futures Trading

Commission-licensed designated contract market, giving Kraken a

regulated venue to offer futures and options to both retail and

institutional clients.

"Under CFTC oversight, Kraken can now integrate

clearing, risk and matching into one environment that meets the

same standards as the largest exchanges in the world," Arjun

Sethi, co-CEO of Kraken said in a statement.

Once the preserve of banks and brokers, the derivatives

market is drawing digital asset firms looking for liquidity and

risk management.

The trillion-dollar crypto market has moved beyond spot

trading, with exchanges and investors seeking

institutional-grade tools such as futures, options and tokenized

assets.

Crypto-linked futures and options have been among the

fastest-growing segments as investors seek to manage risk.

"By securing the necessary licensing and infrastructure

today, Kraken is laying the groundwork for institutional-grade

markets as crypto matures," the company said.

The deal comes as a more crypto-friendly regulatory tone

under U.S. President Donald Trump encourages digital asset firms

to expand in the United States with promises of clearer rules.

Earlier this year, Kraken agreed to buy retail futures

trading platform NinjaTrader for $1.5 billion.