Widely known cryptocurrency exchange Kraken has reached an agreement to acquire US-based retail futures trading platform, NinjaTrader in a $1.5 billion deal. In a blog post released today, the exchange confirmed that the recording-breaking deal is subjected to some pre-discussed price amendments.
If the deal successfully scales through, it will become the largest acquisition of a traditional finance firm by a crypto business set-up. More so, the Kraken and NinjaTrader deal surpasses Stripe’s takeover of Bridge in a $1.1 billion agreement signed last October.
Further, the deal according to Kraken will enforce the position of the cryptocurrency exchange as a reliable platform that provides 24/7 services. The exchange added that the takeover of NinjaTrader aligns with its efforts to provide cutting-edge innovations to enhance users’ experience.
Kraken narrated how NinjaTrader with its existing platform will support the crypto trading platform to become a “leader in the US futures for traditional and cryptocurrency markets.” Giving insights into the deal, the exchange added that the takeover further positions Kraken as a multi-asset-class platform.
As part of its roadmap, the crypto trading outlet said it has plans to provide equities trading and payments for users. According to the blog post, the acquisition supports the compliance efforts as NinjaTrader is registered with top regulators in the US including the Commodity Futures Trading Commission (CFTC).
Sidenote on the takeover of NinjaTrader by Kraken
However, Kraken confirmed that NinjaTrader will continue to operate as a platform on its own but under the supervision of the cryptocurrency exchange. Thanks to this move, users of the TradFi platform will enjoy direct access to the cryptocurrency market through Kraken. Still, Kraken promises to integrate some industry-leading tools of NinjaTrader, allowing users to advance their trading expertise.
The co-CEO of Kraken, Arjun Sethi said the agreement with NinjaTrader is a great step in establishing a synergy between the traditional finance and the digital assets sector. He added that the takeover underlines the push of the crypto exchange to ensure that assets from both sectors are tradable on a single platform without any delay.
On the flip side, the CEO of NinjaTrader, Marty Franchi said the takeover is in conformity with the mission of the platform to “redefine futures trading.” Similarly, the CEO said the synergy will establish a pathway to a multi-asset ecosystem.
As part of its efforts to expand its offering, Kraken has acquired popular firms like Staked, Cryptowatch, and CF Benchmarks. Its latest acquisition, NinjaTrader has been operating in the US since 2003 as a registered Futures Commission Merchant with CFTC and the platform currently has 2 million users.