TradeInformer has learnt that crypto exchange and trading platform Kraken wanted to merge with broker IG Group.
According to a source familiar with the matter, executives at the firm wanted to merge with IG and divest the new entity from tastytrade, a US subsidiary of the London-listed brokerage group that primarily focuses on options trading.
Talks on the merger purportedly fell apart because the two companies could not come to an agreement on this point.
A spokesperson for IG said that the firm “doesn’t comment on market speculation” in response to questioning about the merger.
Kraken announced last week that it had acquired the Small Exchange from IG for $100m.
As TradeInformer reported on at the time, market trends and some of the language used by Kraken post-acquisition strongly suggest they will use the Small Exchange to offer perpetual futures to US customers.
Kraken has made a couple of other notable acquisitions over the last 12 months.
The crypto firm bought futures broker NinjaTrader and prop firm Breakout, both for undisclosed fees.
Our analysis strongly suggests the NinjaTrader deal was equity-based, with Kraken looking to hold an initial public offering in the next 12 months.
