Crypto exchange Kraken has announced its acquisition of Tampa-based startup Breakout, which supports traders with capital. This move expands Kraken's strategic efforts in prop trading.
Deal Details
Kraken has completed its acquisition of Breakout, a startup that provides traders with up to $200,000. The company's approach includes a 'rigorous evaluation' methodology that tests risk management and strategy discipline. Financial terms of the deal were not disclosed.
What is Prop Trading?
Prop trading involves traders using a firm's capital instead of their own, with profits shared between the two. According to Breakout, traders can retain up to 90% of their profits.
Trends in Crypto Exchanges
Recently, crypto exchanges have been acquiring companies to expand their traditional finance offerings. For instance, Coinbase closed a $2.9 billion deal to acquire Deribit.
The Kraken and Breakout deal opens new opportunities for traders and highlights the growing interest in prop trading within the crypto industry.
