Kraken Prop Program Launches Funded Trading Following Breakout Acquisition

Kraken has introduced a proprietary trading program enabling cryptocurrency traders to access company capital after passing an evaluation. This initiative marks the exchange's formal entry into the funded trading segment. Named Kraken Prop, the new service allows traders to operate with up to $200,000 of firm-backed funds while retaining up to 90% of generated profits.

The program extends Kraken's product offerings beyond traditional exchange services into trader funding, a model prevalent in traditional finance and gaining traction in crypto. Traders must first complete an evaluation in a simulated environment mirroring live market conditions, with account sizes ranging from $5,000 to $200,000. Successful participants retain 80% of profits by default, with an option to increase this share to 90%, and can withdraw funds at any time with processing within 24 hours.

Kraken Prop reportedly provides access to over 60 cryptocurrency pairs, including Bitcoin and Ethereum, and offers leverage up to 5x. Traders utilize the same platform and tools available on Kraken Pro during both evaluation and funded phases. The move follows Kraken's acquisition last year of Breakout, a crypto-native proprietary trading firm, making Kraken the first major cryptocurrency exchange to directly enter the prop trading arena.

Arjun Sethi, co-CEO of Kraken, commented, "Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself. In a world that is rapidly shifting from who you know to what you know, we want to build systems that reward demonstrated performance, not pedigree."

Kraken is currently the only major crypto exchange to directly engage in prop trading. Other large exchanges have pursued acquisitions in adjacent areas such as derivatives platforms and brokerages, rather than adopting evaluation-based retail funding models typical of prop firms.