In a major industry move, cryptocurrency exchange Kraken has acquired Breakout, a proprietary trading firm, marking the first time a crypto exchange has entered the prop trading space.
The acquisition will allow Kraken to offer funded trading accounts. Traders can now prove their skills through an evaluation process. Those who pass gain access to up to $200,000 of Kraken’s capital to trade over 50 crypto pairs, keeping up to 90% of their profits.
“We want to build systems that reward demonstrated performance, not pedigree,” said Kraken co-CEO Arjun Sethi.
Unlike traditional prop firms, Kraken uniquely combines this service with its own exchange infrastructure. The move significantly expands Kraken’s offerings for advanced traders, though it brings increased regulatory and risk management complexities.
The Breakout service is expected to be integrated into the Kraken Pro platform in the future.
