Crypto juggernaut Kraken ventures into proprietary trading via acquisition of pioneering firm Breakout.

In a move that could revolutionize the cryptocurrency trading landscape, Kraken, a leading global digital asset exchange, has acquired Breakout. The partnership forms a unified ecosystem that supports traders from education through independent capital deployment.

The acquisition allows qualified traders to access up to $200,000 in trading capital without risking their own money. This capital allocation is based on skill rather than access to capital, as explained by Arjun Sethi, co-CEO of Kraken.

Breakout's performance-based model, which focuses on skill rather than wealth, has been a game-changer in the industry. Traders must first pass a rigorous evaluation that tests their risk management abilities and strategy consistency. Successful traders can keep up to 90% of their profits, which are paid directly on-demand.

Breakout sources liquidity directly from Tier 1 centralized exchanges, providing traders with institutional-grade exchange liquidity. The integration with Kraken's infrastructure improves technical excellence, ensuring traders can execute strategies with minimal delays and slippage.

The integration offers advantages such as global regulatory licenses, security standards, market connectivity, instant funding between accounts, and streamlined settlement processes. The platform supports advanced order types and provides real-time risk management tools.

Traders gain access to over 50 cryptocurrency pairs with up to 5x leverage for Bitcoin and Ethereum contracts, and 2x leverage for other digital assets. The evaluation process includes strict risk management rules such as maximum drawdowns of 6% for 1-step accounts and 8% for 2-step models.

The timing of the acquisition appears strategic given the current regulatory environment, with the crypto industry operating under more favorable conditions following the 2024 US presidential election. The global cryptocurrency market is projected to reach $7.98 trillion by 2030, with a surge in search interest for prop trading firms.

Kraken's strategic moves, such as the acquisition of Breakout, NinjaTrader, and Capitalise.ai, position the company uniquely in the competitive crypto exchange landscape. The company offers a comprehensive trading ecosystem that combines spot trading, futures, and proprietary trading under one platform.

The acquisition of Breakout also establishes a new standard for skill-based capital allocation in cryptocurrency markets. Thousands of crypto traders seeking access to larger capital pools now have new opportunities to scale their strategies without personal financial risk. Breakout offers scaling opportunities for successful traders, with the potential to increase account balance by 25% every three months and earn higher profit splits, reaching 95% for top performers.

With this acquisition, Kraken is set to redefine the future of cryptocurrency trading, offering a unified ecosystem that supports traders from education through independent capital deployment, all while focusing on skill-based capital allocation.

Crypto juggernaut Kraken ventures into proprietary trading via acquisition of pioneering firm Breakout.