Kraken has entered the proprietary trading space by acquiring Breakout, a startup based in Tampa, Florida that provides traders with capital up to $200,000 following a detailed evaluation of their risk management skills and trading strategies. This acquisition, announced recently, aims to allocate capital based on skill rather than mere access to funds, according to Kraken's co-CEO Arjun Sethi. Under this model, traders can retain up to 90% of their profits. Breakout, which launched in 2023, supports over 50 crypto trading pairs and will be integrated into Kraken Pro as part of Kraken's broader push into trading infrastructure. The move follows Kraken's earlier acquisition of NinjaTrader for $1.5 billion in May 2025. Proprietary trading has gained traction in the crypto sector, with firms like Jump Crypto and DRW’s Cumberland leveraging their own capital for trading activities. This development aligns with other recent strategic acquisitions in the cryptocurrency exchange sector, as companies seek to bolster their traditional finance tools and offerings.

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