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Cryptocurrency exchange giant Kraken is reportedly on the verge of acquiring NinjaTrader, a US-based retail futures trading platform, in a deal valued at $1.5 billion, according to a report by The Wall Street Journal, citing individuals familiar with the matter.
The acquisition is expected to be officially announced as early as today (Thursday) and would provide Kraken with a crucial pathway to offering cryptocurrency futures and derivatives trading to its US customer base.
The acquisition of NinjaTrader, if finalized, would represent a major strategic victory for Kraken in the competitive U.S. cryptocurrency market. By gaining access to an established and regulated futures trading platform, Kraken would be well-positioned to capitalize on the increasing demand for crypto derivatives among both retail and institutional investors in the United States.
Founded in 2003, NinjaTrader operates as a CFTC-regulated Futures Commission Merchant (FCM), offering a suite of futures trading tools to a user base of over 1.8 million customers, according to its website. This regulatory status is the key driver behind Kraken's interest, as it would allow the crypto exchange to leverage NinjaTrader's existing licenses to offer crypto futures and derivatives within the U.S., a market where direct access to such products has been limited due to regulatory complexities.
The acquisition would mark a significant expansion for Kraken, enabling it to tap into asset classes beyond cryptocurrencies and broaden its overall user base. While the report suggests that NinjaTrader is expected to continue operating as an independent brand under the Kraken umbrella, the synergy between the two platforms would be substantial.
Furthermore, the report outlined Kraken's ambitions to extend NinjaTrader's reach beyond the U.S., with plans to expand its services to the United Kingdom, Europe, and Australia. This international expansion aligns with Kraken's broader growth strategy, which has seen the San Francisco-headquartered exchange making moves to solidify its presence in various global markets.
Last month, Kraken acquired a company in Cyprus to secure a Markets in Financial Instruments Directive (MiFID) license, allowing it to offer derivatives across the European Economic Area. Additionally, Kraken recently obtained an Electronic Money Institution (EMI) license from the UK's Financial Conduct Authority (FCA), further bolstering its growth plans in the United Kingdom.
The potential acquisition of NinjaTrader also comes on the heels of the SEC dropping its lawsuit against Kraken, a case initiated under the previous SEC Chair Gary Gensler.
Notably, this isn't the first indication of Kraken's interest in expanding its derivatives offerings. Previous reports highlighted Kraken's involvement in talks to potentially acquire Deribit, the world’s leading crypto options exchange.
