Kraken to Buy NinjaTrader In a $1.5 Billion Deal
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A popular crypto exchange Kraken is currently in negotiations with a goal of acquiring a leading US-based futures trading platform, NinjaTrader. According to some reports, the deal could be worth $1.5 billion, and it would represent a strategic acquisition that could significantly increase Kraken’s presence in the derivatives market.
Not only that, but the exchange could increase its offering, and could start servicing a much broader range of traders as a result.
This is in line with Kraken’s long-time goal of diversifying its product offerings, and expanding beyond spot crypto trading. The exchange has been interested in going into traditional financial markets for some time, especially when it comes to futures and derivatives.
As for NinjaTrader, it was established over 20 years ago, in 2003. Since then, the company managed to build a strong reputation among future traders through its offering of a comprehensive suite of tools and brokerage services.
Right now, it services over 1.8 million people, and it is officially registered as a Futures Commission Merchant (FCM), which makes it an attractive target for the exchange looking to expand.
What Would Happen If The Two Finalize The Deal?
If the two end up agreeing on the terms of the deal, the acquisition will also strengthen Kraken’s presence in the US market. With the US becoming a highly regulated and lucrative sector for crypto futures trading, this too would benefit Kraken, which could later be able to integrate NinjaTrader’s technology to offer access to traditional futures and crypto derivatives, all on the same platform.
Furthermore, the deal will also support NinjaTrader’s own international expansion, as Kraken plans to leverage its global infrastructure to bring NinjaTrader’s services to markets outside the US, such as Australia, the UK, and continental Europe.
Finally, Kraken is also doubling down on regulatory approvals and compliance, which will be of key importance in securing a smooth transition as it integrates Ninja Trader into its own ecosystem.
