Kraken Purchases Breakout, Crypto-Specialized Proprietary Trading Company, to Broaden Cryptocurrency Trading Approach
Kraken Expands into Prop Trading with Acquisition of Breakout
In a significant move, crypto exchange platform Kraken has announced the acquisition of crypto-native proprietary trading firm Breakout. The deal, reportedly worth $1.5 billion, marks Kraken's first foray into the prop trading space, making it the first crypto exchange platform to enter this domain.
The acquisition was finalised in July 2024, and was backed by notable investors including RockawayX, Mechanism Capital, IOBC Capital, C2 Ventures, and Round13 Capital, who collectively contributed $4.5 million in a seed funding round for Breakout.
With the integration of Breakout to the Kraken Pro platform, eligible users will be able to develop strategies across 50+ crypto pairs, and trade crypto using funded accounts without using personal funds. This performance-based reward system, as noted by Kraken's co-CEO Arjun Sethi, rewards traders based on their performance, not pedigree.
Eligible users will also be able to access up to $200,000 in notional capital, and up to 5x leverage on BTC and ETH will be available for trading.
Kraken's acquisitions and partnerships, such as the recent one with Backed Finance for tokenised US stocks trading under the xStocks product, indicate a continued growth and diversification of its business. These moves demonstrate Kraken's commitment to expanding its business strategy beyond crypto trading.
The co-CEO or founder's name of Breakout, which was acquired by Kraken, is not explicitly stated in the available search results. However, the acquisition is expected to bring innovative trading strategies and technologies to Kraken, further strengthening its position in the crypto market.
In conclusion, Kraken's latest acquisition and partnerships are a testament to its growth and diversification, and its commitment to providing innovative trading solutions to its users. The integration of Breakout is set to revolutionise the trading experience on Kraken, offering new opportunities for traders and further cementing Kraken's position as a leader in the crypto exchange market.
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