• Kraken buys Breakout to support skilled traders with access to capital based on trading performance.
• Breakout will merge with Kraken Pro as the firm expands services before its planned public listing.
• US crypto firms grow fast as regulators ease pressure and allow more space for new products.

Crypto exchange Kraken has acquired Breakout, a Florida-based proprietary trading platform, as it builds out its trading services. The deal comes just months after Kraken acquired NinjaTrader for $1.5 billion. Breakout supports advanced crypto traders with capital allocations of up to $200,000. Traders must pass strict evaluation tests focused on risk management and strategy.

Kraken plans to integrate Breakout into its Kraken Pro platform. The move signals a deeper investment in trading infrastructure. Breakout allows users to trade over 50 crypto pairs, including leveraged contracts on Bitcoin and Ether. Top traders can keep up to 90% of their profits. The acquisition supports Kraken’s broader aim to attract skilled traders with tools usually reserved for institutions.

Strengthening Trading Infrastructure Ahead of Public Offering

Kraken continues expanding ahead of its anticipated public listing. The company aims to become the second U.S. crypto exchange to go public after Coinbase. A spokesperson confirmed the IPO could happen in early 2026. Kraken has launched several new services in 2025, including support for stocks and ETFs in select U.S. states.

The addition of Breakout adds a performance-based capital layer to Kraken’s services. It positions the company to compete with both traditional finance players and newer crypto-native platforms. Breakout’s model focuses on rewarding trading performance rather than investor background or access to capital.

Regulatory Environment Eases for U.S. Crypto Exchanges

The growth of Kraken coincides with a change in regulations in America. In March, the U.S. Securities and Exchange Commission dismissed enforcement proceedings in cases against Kraken and two other crypto companies. The decision marked a turning point for compliance concerns in the sector.

Other firms, including Coinbase, Uniswap Labs, and OpenSea, have also seen enforcement cases dismissed. The easing of regulatory pressure has encouraged new growth strategies across the industry. Kraken is among several platforms scaling services through acquisitions and new offerings.

Prop Trading Gains Traction in the Crypto Sector

Proprietary trading has grown rapidly across crypto markets. After restrictions on U.S. banks following the 2008 crisis, firms like Citadel and Jane Street dominated this space. Crypto has since developed its own ecosystem, led by firms such as Jump Crypto and Cumberland.

Retail-facing platforms like Breakout, HyroTrader, and Crypto Fund Trader now offer prop trading access through evaluations. Kraken’s acquisition of Breakout marks a significant step into this space. The move gives the company a tested system to allocate capital based on trader performance.

Financial terms of the Breakout deal were not disclosed. Breakout had previously raised $4.5 million in seed funding in 2024.