In the biggest-ever merger of the traditional finance and cryptocurrency sectors, Kraken has disclosed that it has spent $1.5 billion to acquire the futures trading platform NinjaTrader.
As a result of the acquisition, NinjaTrader’s sophisticated futures trading platform and its established user base of over 500,000 traders are immediately available to Kraken.
How Kraken Plans to Integrate NinjaTrader
Kraken will gradually include cryptocurrency futures and options trading into the platform while NinjaTrader’s present offerings remain. Plans are also in place to develop cross-market trading techniques that profit from both conventional market swings and cryptocurrency volatility.
Kraken expands its service offerings to institutional clients and positions itself to navigate the evolving regulatory landscape by acquiring an established and regulated futures trading platform.
The combined firm plans to expand its Chicago, New York, and London operations, which already employ over 3,500 people worldwide, to strengthen its presence in significant financial centers.
Regulatory Hurdles and Future Opportunities
Given NinjaTrader’s proven regulatory compliance system, the acquisition is expected to remove remaining obstacles even if certain countries are still pending regulatory approval.
Looking forward, the agreement might dissolve the artificial barriers separating cryptocurrencies from conventional asset classes. This can also present opportunities for trading strategies spanning several market sectors and portfolio diversification.
Several big cryptocurrency exchanges are in negotiations with conventional brokerages and trading technology providers, which could cause a rush of consolidation across the financial technology industry.
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