U.S. crypto exchange Kraken has acquired Breakout, a proprietary funded-trader platform that gives successful users access to sizeable notional capital and generous profit splits. The move expands Kraken’s product range for advanced traders and comes as the company prepares to go public.
Breakout offers eligible traders up to $200,000 in notional capital and lets them keep up to 90% of profits. Traders can trade BTC and ETH contracts with 5x leverage, but must pass an evaluation to receive capital allocations and face periodic retests if drawdown limits are breached.
Kraken said it plans to integrate Breakout into Kraken Pro. “Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself,” co-CEO Arjun Sethi said. “We want to build systems that reward demonstrated performance, not pedigree.”
The acquisition follows a string of product moves by Kraken, including a March agreement to buy futures platform NinjaTrader for $1.5 billion, and new offerings such as stock and ETF trading in some U.S. states. Kraken has confirmed plans to pursue an IPO, with reports suggesting a potential listing as early as 2026.
Regulatory momentum has also eased: the U.S. Securities and Exchange Commission recently dismissed enforcement actions against Kraken and several other crypto firms, a development Kraken said supports its expansion plans.
Risk note: Funded trading programs and leveraged contracts carry significant downside risk, including amplified losses and the possibility of sudden liquidations. This is not financial advice.
Source: Decrypt. Read the original coverage for full details.