Kraken Acquires Small Exchange to Expand into Prediction Markets

Kraken Acquires Small Exchange to Expand into Prediction Markets

Kraken has purchased the CFTC-licensed Small Exchange for $100 million, setting the stage for the major crypto platform to add event contracts to its product lineup.
This gives Kraken a path to offer derivatives tied to outcomes of real-world events—politics, economics, sports—and marks a shift toward a more diversified “everything exchange.” Other firms, including Coinbase, have signaled interest in entering prediction markets too. However, the move may face delays. Due to the U.S. government shutdown, the CFTC indicated that many of its operations could be placed on hold—potentially slowing review of exchange filings and mergers.