Kraken Expands Into Prop Trading With Breakout Deal

U.S.-based crypto exchange Kraken is entering the retail proprietary trading sector through the acquisition of Breakout, a platform that funds traders based on proven performance rather than personal capital. The move follows last month's purchase of trading automation firm Capitalise.ai, signaling Kraken's continued expansion beyond traditional exchange services.

Financial terms of the Breakout deal were not disclosed. Breakout's model allows traders to access up to $200,000 in notional capital once they complete and pass an evaluation phase designed to test strategy consistency and risk management. Successful participants can keep up to 90% of profits, which are paid directly on demand.

Kraken co-CEO Arjun Sethi said the acquisition aligns with the company's cultural emphasis on rewarding skill over connections. "Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself," he explained. "This is not simulation for simulation's sake. It is a filter for scalable signal."

Alex Miningham, co-founder and CEO of Breakout, described the deal as a natural fit. "Breakout gives traders a performance-based starting point. Kraken delivers the scale and tools to grow," he said. Together, he argued, the firms create "a unified ecosystem that supports the full trader journey from education through independent capital deployment."

Breakout enables trading across more than 50 crypto pairs, with leverage of up to 5x on BTC and ETH contracts. Each funded account is capped at $100,000 in notional capital, though traders may hold multiple accounts up to a combined $200,000. Breaches of drawdown limits require requalification.

Kraken plans to integrate Breakout directly into its Kraken Pro platform, offering seamless access for eligible users. The exchange said the acquisition reinforces its mission of empowering skilled traders and expanding open, performance-based opportunities.

Founded in 2011, Kraken is one of the longest-running crypto platforms, serving more than 15 million clients worldwide. It offers trading in over 450 digital assets, along with traditional instruments such as U.S. futures and ETFs.