Investment broker IG has offloaded its futures exchange platform, Small Exchange Inc, as part of a collaboration with global cryptocurrency exchange Kraken, reports BritPanorama.
IG disposed of the Chicago-based firm, which it acquired in 2023, to Payward Inc., Kraken’s parent company, for $100 million (£74.9 million), as confirmed by City AM. The transaction comprised $32.5 million in cash and $67.5 million in Payward shares, delivering a post-tax profit of £73.3 million for the digital broker.
The deal will also strengthen the company’s regulatory capital reserves by £22.7 million. The broker’s share price climbed 0.56 per cent in early morning trading to 1,076p, marking a 9.13 per cent increase year to date.
IG deal terms
According to the agreement between the two firms, IG will establish a partnership arrangement with Kraken. The collaboration involves IG serving as the gateway through which clients can access or trade cryptocurrency products, including Bitcoin and Ethereum.
Breon Corcoran, chief executive of IG Group, stated: “The transaction represents a significant return on the Group’s acquisition of Small Exchange and enables us to collaborate with Kraken on the distribution of new crypto products.”
Expanding into the cryptocurrency sector
The choice to divest Small Exchange represents another move in the company’s strategy to transform into a multi-asset platform and enhance its cryptocurrency offering. In September, IG revealed the purchase of Australia’s premier cryptocurrency exchange, Independent Reserve.
The deal is set to conclude in early 2026, with IG having also secured its crypto asset licence from the Financial Conduct Authority. This strategic move has allowed the brokerage to expand its market presence and cryptocurrency services across the UK.
Michael Healy, UK managing director at IG, described the acquisition as “a significant step forward” in capitalising on the “UK’s rapidly growing crypto sector.” Additionally, the group participated in a fresh funding round for Zero Hash Holdings, a prominent market infrastructure provider for crypto, stablecoin, and tokenised assets earlier this year, securing an 8.1 per cent stake in the business.
The recent strategic maneuvers by IG reflect an acute awareness of market trends, particularly in the burgeoning cryptocurrency sector. The collaboration with Kraken positions the broker as a key player, leveraging its capabilities to navigate a rapidly evolving financial landscape.
