Kraken has moved into the world of proprietary trading with the purchase of Breakout, a Florida-based startup that provides traders with access to capital once they prove their skills.
The acquisition is part of the San Francisco exchange’s plan to broaden its trading services as it works towards a public listing.
Breakout, launched in 2023, allows traders who pass a strict evaluation process to control up to $200,000 in notional capital.
Those who succeed can retain as much as 90% of their profits, but must undergo retesting if they breach risk limits.
The platform supports over 50 trading pairs and offers leverage of up to five times on Bitcoin and Ether contracts.
Kraken co-CEO Arjun Sethi said,
“Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself. In a world that is rapidly shifting from who you know to what you know, we want to build systems that reward demonstrated performance, not pedigree.”
Kraken said the service will eventually be integrated into its advanced trading arm, Kraken Pro, where it will be pitched at professional traders looking to scale up.
The company described the move as part of its commitment to offer “innovative, performance-based products” that allow skilled market participants to trade at size.
Financial terms of the deal have not been disclosed.
Breakout raised $4.5 million in seed funding last year before being acquired.
The purchase is Kraken’s second major acquisition this year.
In May, the exchange announced a $1.5 billion takeover of NinjaTrader, a U.S. futures and trading software platform.
The company has also introduced stock and ETF trading in selected American states as it gears up for an initial public offering expected as early as 2026.
If completed, Kraken would become only the second U.S.-based crypto exchange to trade publicly after Coinbase’s Nasdaq debut in 2021.
Kraken’s expansion comes as digital asset firms face a more accommodating regulatory environment under President Donald Trump’s administration.
In March, the Securities and Exchange Commission dropped long-running enforcement cases against Kraken, Coinbase, Robinhood, Uniswap Labs and OpenSea, ending legal disputes that had cast uncertainty over the sector.
Sethi stated,
“By integrating Breakout into Kraken, we are building an infrastructure layer where traders can earn their way into size, deploy capital with minimal friction, and get paid on merit. [...] Transparent, programmable, and open to anyone with an edge.”
Proprietary trading—where firms allocate their own funds to traders in exchange for a share of profits—has long been a fixture in traditional finance, but was largely limited for U.S. banks after the 2008 financial crisis.
In crypto, firms such as Jump Crypto and Cumberland deploy capital directly, while retail-focused platforms like Breakout have brought the model to individual traders through performance testing.
With Breakout now under Kraken’s wing, the exchange is positioning itself to compete more directly with both institutional trading firms and emerging retail prop platforms.
Pizza Hut and Spark Foundry have clinched the esteemed title of Best Brand Experience of the Year at The Drum Awards for Metaverse. This recognition stems from their exceptional collaboration with End of the World Pizza (EOWP), delving into the Metaverse with an innovative approach.
JoyRevised figures for Q3 disclosed the fastest quarterly expansion in almost two years, with consumer spending rising at a healthy 3.6% annual rate, albeit slightly lower than the initial 4% estimate.
BrianAmir Hossein Golshan, a 25-year-old Los Angeles resident, has been sentenced to 96 months in federal prison for orchestrating various scams, including "SIM swapping" to hijack Instagram accounts. Golshan's schemes, resulting in over $1.2 million in losses, involved impersonating individuals, fraudulent advertising, and exploiting two-step authentication vulnerabilities, showcasing the escalating sophistication of digital fraud.
JixuLouis Vuitton unveils the VIA Tile Trunk, a €6,000 NFT symbolizing its bold move into Web3, blending high fashion with the digital landscape. This marks the brand's pioneering step into direct digital sales, showcasing a unique fusion of NFTs and physical luxury products, setting the stage for a dynamic future in the digital luxury market.
JixuCristiano Ronaldo faces legal repercussions as a class-action lawsuit accuses him of promoting Binance's unregistered securities through his NFT collections. The lawsuit alleges Ronaldo's endorsements fueled Binance's surge, leading to claims of influencing users' investment decisions, while the broader legal turmoil involving Binance and its founder adds to the scrutiny of celebrities in cryptocurrency promotions.
JixuSão Paulo Football Club pioneers NFT tickets for their upcoming match with Flamengo on December 6th, using the Smart Ticket system from their tech hub. This blockchain-based innovation challenges traditional ticketing, offering fans tiered pricing for tokenized tickets with tangible and digital experiences, aligning with the 'Loyalty 3.0' trend to enhance customer engagement.
JixuAnimoca Brands Japan and Quidd join forces to pioneer the convergence of anime and manga with Web3, offering a unique blend of Japanese intellectual properties and digital collectibles. This collaboration aims to cater to global fandom, providing innovative digital collectibles accessible to enthusiasts worldwide, bridging the cultural richness of Japanese anime and manga with cutting-edge technology.
JixuWormhole, a trailblazing messaging protocol facilitating blockchain cross-communication, has hit a new high in the crypto sphere, amassing $225 million in its latest fundraising.
YouQuanStability.ai has recently announced its latest breakthrough – the Stable Video Diffusion AI model. This innovation marks a significant leap in AI capabilities, enabling the transformation of still images into captivating animations.
JoyBinance has been given three months by the SEC "to give Filipino investors who have holdings in Binance to close their positions and take out their investments."
Brian