Kraken declares entry into US derivatives market... "Let's take on Coinbase"

▲ Kraken/AI generated image ©

According to a CoinGape report on May 4 (local time), global virtual asset exchange Kraken has officially entered the US cryptocurrency derivatives market by acquiring derivatives exchange Bitnomial.

Through this strategic acquisition, Kraken has secured a strong foothold to provide regulatory-compliant futures and options trading services in the US, laying the groundwork to gain an advantage in the market share battle against major competitors like Coinbase.

Bitnomial is recognized as a key company that has secured licenses for both exchange, clearinghouse, and settlement facility from the US Commodity Futures Trading Commission (CFTC). Kraken plans to leverage Bitnomial's regulatory-approved assets to provide a legitimate derivatives trading environment for institutional and individual investors. Industry insiders view this deal as a significant turning point where the service scope of virtual asset exchanges in the US will rapidly expand from spot-focused services to derivatives.

In the virtual asset market, derivatives constitute a core sector, forming an overwhelmingly larger volume than spot trading. With this acquisition, Kraken plans to diversify its revenue structure by supporting futures trading of major assets such as Bitcoin (BTC) and Ethereum (ETH) for its US customers. Particularly, securing a CFTC-approved license directly in the highly regulated US market is expected to be a key asset for future business expansion.

Kraken's move clearly demonstrates its commitment to breaking through the market by adhering to regulations, even amidst its ongoing legal conflicts with the US Securities and Exchange Commission (SEC). The exchange stated, "The acquisition of Bitnomial is a strategic choice to become the most trusted virtual asset service provider in the US market," adding, "We will continue to introduce innovative financial products within the regulatory framework."

Experts anticipate that the competition for dominance in the US virtual asset derivatives market will intensify once the acquisition is finalized. With the expansion of legitimate services under strict regulatory oversight, expectations for increased market transparency and stability are growing. Kraken plans to integrate Bitnomial's technology in the future to build a derivatives-specific platform that maximizes user convenience.

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