Kraken to Acquire Futures Broker NinjaTrader in $1.5 Billion Crypto-TradFi Deal

American crypto exchange Kraken has announced it is buying futures trading platform NinjaTrader in a deal that would help it achieve its expansion goals and underscores the growing intersection of traditional finance and crypto.

In a Thursday announcement, San Francisco-based Kraken valued the acquisition at $1.5 billion, subject to certain purchase price adjustments.

"This acquisition strengthens our position as a 24/7, always-on technology platform built for professional traders, making us a leader in U.S. futures for both traditional and crypto markets," Kraken said in a press release.

The transaction comes as Kraken looks to expand as it also emerges from regulatory headwinds. Earlier this month, the Securities and Exchange Commission agreed to drop a lawsuit against Kraken that alleged it was operating as a securities exchange. Earlier this month, the exchange confirmed to Decrypt that it is planning to go public but would not reveal a timeline.

NinjaTrader allows traders to buy and sell contracts that bet on the future price of commodities such as oil, Bitcoin, and copper. 

Kraken's co-CEO Arjun Sethi added that while "traditional markets run on post-WWII, 1950s banking systems," today's acquisition was the beginning of Kraken's move to become an "institutional-grade trading platform where any asset can be traded, anytime."

The exchange's announcement added that the company is hoping to branch out into other assets. "It also accelerates Kraken's multi-asset-class ambitions—which also include plans for equities trading and payments," it read. 

Kraken allows customers to buy, sell, and bet on the future price of digital coins and tokens like Bitcoin, Ethereum, and Solana. Last year, Kraken launched a suite of crypto derivatives products for Australian wholesale clients. 

SEC Will Drop Lawsuit Against Kraken, Says Crypto Exchange

The Securities and Exchange Commission has "agreed in principle" to drop its lawsuit against crypto exchange Kraken, the company announced Monday. In a blog post, the San Francisco-based exchange said that the 2023 lawsuit against the exchange had been scrapped "with no admission of wrongdoing, no penalties paid, and no changes to our business." "It ends a wasteful, politically motivated campaign, lifts uncertainty that stifled innovation and investment, and clears the path toward a stable, forw...

The exchange is one of the biggest digital asset trading platforms in the U.S., with a 24-hour trading volume of $1.3 billion, according to CoinGecko data. 

Edited by James Rubin