Kraken has taken a decisive step to expand its
footprint in active trading by acquiring Breakout, a crypto-native proprietary
trading firm. The deal marks the first time a top-tier exchange has integrated
a “prop trading arm” directly into its ecosystem, potentially signaling a new
wave of gamified trading products in crypto.
What Breakout Brings
Breakout operates a familiar model for traders in
forex and futures: participants pay a fee to enter a challenge or evaluation
phase. If they meet profit targets without breaching drawdown limits, they
unlock access to a funded account, in Breakout’s case, with up to $200,000 in
notional capital. Traders keep the majority of profits, with splits reaching as
high as 90%.
This past week w/@Pete_Rizzo_
TL;DR 👇
• Kraken acquires Breakout
• Kaiko ranks Kraken as the top global exchange (Q3 ’25)
• Tokenized equities are coming to Ethereum via xStocks pic.twitter.com/y7uJklOqQi— Kraken (@krakenfx) September 5, 2025
Importantly, no deposit is required. The only
upfront cost is the evaluation fee, making it a low-barrier entry point for
ambitious traders who want to scale their strategies without risking personal
capital.
Related: Prop Firms Evolve in 2025: Adapting to New Technology and Trader Needs
Breakout also differentiates itself with
crypto-specific flexibility. Unlike many FX prop firms, it allows trading
around news events and offers a wide range of digital assets, backed by
liquidity from tier-one exchanges.
Why Kraken’s Move Is Different
Prop trading has existed in crypto before, but usually
in the form of independent firms running outside exchange ecosystems. By
acquiring Breakout, Kraken is the first major global exchange to bring this
model in-house.
Breakout has been acquired by @krakenfxhttps://t.co/TP7x8lUTat pic.twitter.com/j0Rxj1vWxn
— Breakout (@breakoutprop) September 4, 2025
This has several implications:
Seamless integration: Breakout will be rolled into
Kraken Pro, making funded trading just a click away for existing users.
Institutional polish: Kraken’s reputation for
compliance and transparency could professionalize a niche often criticized for
being too reliant on evaluation fees.
Strategic positioning: Following its earlier acquisition of NinjaTrader, Kraken is clearly building a comprehensive suite
for active traders, including tools, markets, and now capital access.
A Cultural Fit for Crypto
On the surface, prop trading looks like a TradFi
import. But in many ways, it fits crypto’s DNA even better.
Crypto traders are already immersed in a culture of
leaderboards, challenges, and public P&L flexing. Prop models add a
structured version of that same culture: hit the targets, prove your skill, and
climb the rankings.
The structure also mirrors the concept of a “freeroll”
in online poker. Traders pay a fixed fee to enter the challenge, but once
funded, they are effectively trading with the “house’s money.” Their downside
is capped at the entry fee, while their upside is tied to performance.
That
asymmetric payoff profile is highly appealing to the typical retail crypto
trader, who values both risk control and big-upside potential.
Beyond Crypto: Tokenized Assets on the Horizon
The timing of Kraken’s move is notable. As tokenized
stocks, bonds, and real-world assets begin to migrate on-chain, the range of
instruments available for prop programs will only expand.
BREAKING: Wall Street is officially onchain.
xStocks are now live on Kraken ❎60 U.S. equities tokenized and tradable 24/5. More coming soon.
We’re not waiting for the future. We’re building it.👇https://t.co/iKu44ZiwZN
Not available in the U.S. or to U.S. persons. Geo… pic.twitter.com/FjOsxDJ9se
— Kraken (@krakenfx) June 30, 2025
Imagine traders competing for funded accounts in Bitcoin or Ethereum and prop trading tokenized shares of Apple, Tesla,
or an S&P 500 basket, all within the same crypto-native environment.
If Breakout’s model proves successful under Kraken, it
could serve as a blueprint for the next generation of trading platforms: one
where crypto, tokenized equities, and other digital assets converge, and where
skill-based access to capital replaces the traditional reliance on personal
deposits.
In this context, Kraken is not just buying a prop
firm. It is positioning itself at the intersection of gamified trading and the
coming wave of tokenized markets.
Opportunities and Risks
For Kraken, the acquisition opens new revenue streams:
evaluation fees, trading volumes from funded accounts, and potential synergies
with its broader trading ecosystem. It also creates a talent pipeline,
surfacing skilled traders who may later be tapped for partnerships,
market-making, or even recruitment.
But challenges remain:
Regulatory scrutiny: Prop firms have faced criticism
in other markets for over-relying on evaluation fees. Kraken will need to
demonstrate that Breakout delivers meaningful funded trading opportunities and
payouts.
Execution model: Traders will want clarity on whether
funded accounts represent live trading on Kraken’s order books, or simulated
environments with internal risk controls. Transparency here will be critical to
trust.
User education: Many retail crypto traders are new to
prop-style programs. Kraken will need to make the model accessible without
oversimplifying the risks.
Will Others Follow?
If successful, Kraken’s move could normalize prop
trading across the industry. Competitors like Binance, Bybit, and OKX, already
vying for trader engagement through gamified campaigns and copy-trading, may be
quick to follow with acquisitions or in-house prop programs. Coinbase, with its
more conservative U.S. regulatory stance, is less likely to move first.
For now, Kraken has planted a flag. In an industry
obsessed with gamification, capital access, and performance-based status,
Breakout gives the exchange a compelling new way to attract and retain
ambitious traders.
Read more: Kraken Enters Prop Trading: Breakout Acquisition Gives Funded Accounts
Kraken’s acquisition of Breakout is more than a
product expansion. It is a signal that prop trading could become a mainstream
fixture in crypto, much like it has in forex.
By blending skill-based
progression, gamified incentives, and capped-risk freeroll dynamics, Kraken is
tapping directly into the ethos of the modern crypto trader.
As more assets, from crypto tokens to blue-chip equities, come on-chain, the potential of prop trading widens even further. In the near future, traders may be able to compete for funded accounts not just in Bitcoin but also in tokenized stocks and beyond.
Kraken has taken a decisive step to expand its
footprint in active trading by acquiring Breakout, a crypto-native proprietary
trading firm. The deal marks the first time a top-tier exchange has integrated
a “prop trading arm” directly into its ecosystem, potentially signaling a new
wave of gamified trading products in crypto.
What Breakout Brings
Breakout operates a familiar model for traders in
forex and futures: participants pay a fee to enter a challenge or evaluation
phase. If they meet profit targets without breaching drawdown limits, they
unlock access to a funded account, in Breakout’s case, with up to $200,000 in
notional capital. Traders keep the majority of profits, with splits reaching as
high as 90%.
This past week w/@Pete_Rizzo_
TL;DR 👇
• Kraken acquires Breakout
• Kaiko ranks Kraken as the top global exchange (Q3 ’25)
• Tokenized equities are coming to Ethereum via xStocks pic.twitter.com/y7uJklOqQi— Kraken (@krakenfx) September 5, 2025
Importantly, no deposit is required. The only
upfront cost is the evaluation fee, making it a low-barrier entry point for
ambitious traders who want to scale their strategies without risking personal
capital.
Related: Prop Firms Evolve in 2025: Adapting to New Technology and Trader Needs
Breakout also differentiates itself with
crypto-specific flexibility. Unlike many FX prop firms, it allows trading
around news events and offers a wide range of digital assets, backed by
liquidity from tier-one exchanges.
Why Kraken’s Move Is Different
Prop trading has existed in crypto before, but usually
in the form of independent firms running outside exchange ecosystems. By
acquiring Breakout, Kraken is the first major global exchange to bring this
model in-house.
Breakout has been acquired by @krakenfxhttps://t.co/TP7x8lUTat pic.twitter.com/j0Rxj1vWxn
— Breakout (@breakoutprop) September 4, 2025
This has several implications:
Seamless integration: Breakout will be rolled into
Kraken Pro, making funded trading just a click away for existing users.
Institutional polish: Kraken’s reputation for
compliance and transparency could professionalize a niche often criticized for
being too reliant on evaluation fees.
Strategic positioning: Following its earlier acquisition of NinjaTrader, Kraken is clearly building a comprehensive suite
for active traders, including tools, markets, and now capital access.
A Cultural Fit for Crypto
On the surface, prop trading looks like a TradFi
import. But in many ways, it fits crypto’s DNA even better.
Crypto traders are already immersed in a culture of
leaderboards, challenges, and public P&L flexing. Prop models add a
structured version of that same culture: hit the targets, prove your skill, and
climb the rankings.
The structure also mirrors the concept of a “freeroll”
in online poker. Traders pay a fixed fee to enter the challenge, but once
funded, they are effectively trading with the “house’s money.” Their downside
is capped at the entry fee, while their upside is tied to performance.
That
asymmetric payoff profile is highly appealing to the typical retail crypto
trader, who values both risk control and big-upside potential.
Beyond Crypto: Tokenized Assets on the Horizon
The timing of Kraken’s move is notable. As tokenized
stocks, bonds, and real-world assets begin to migrate on-chain, the range of
instruments available for prop programs will only expand.
BREAKING: Wall Street is officially onchain.
xStocks are now live on Kraken ❎60 U.S. equities tokenized and tradable 24/5. More coming soon.
We’re not waiting for the future. We’re building it.👇https://t.co/iKu44ZiwZN
Not available in the U.S. or to U.S. persons. Geo… pic.twitter.com/FjOsxDJ9se
— Kraken (@krakenfx) June 30, 2025
Imagine traders competing for funded accounts in Bitcoin or Ethereum and prop trading tokenized shares of Apple, Tesla,
or an S&P 500 basket, all within the same crypto-native environment.
If Breakout’s model proves successful under Kraken, it
could serve as a blueprint for the next generation of trading platforms: one
where crypto, tokenized equities, and other digital assets converge, and where
skill-based access to capital replaces the traditional reliance on personal
deposits.
In this context, Kraken is not just buying a prop
firm. It is positioning itself at the intersection of gamified trading and the
coming wave of tokenized markets.
Opportunities and Risks
For Kraken, the acquisition opens new revenue streams:
evaluation fees, trading volumes from funded accounts, and potential synergies
with its broader trading ecosystem. It also creates a talent pipeline,
surfacing skilled traders who may later be tapped for partnerships,
market-making, or even recruitment.
But challenges remain:
Regulatory scrutiny: Prop firms have faced criticism
in other markets for over-relying on evaluation fees. Kraken will need to
demonstrate that Breakout delivers meaningful funded trading opportunities and
payouts.
Execution model: Traders will want clarity on whether
funded accounts represent live trading on Kraken’s order books, or simulated
environments with internal risk controls. Transparency here will be critical to
trust.
User education: Many retail crypto traders are new to
prop-style programs. Kraken will need to make the model accessible without
oversimplifying the risks.
Will Others Follow?
If successful, Kraken’s move could normalize prop
trading across the industry. Competitors like Binance, Bybit, and OKX, already
vying for trader engagement through gamified campaigns and copy-trading, may be
quick to follow with acquisitions or in-house prop programs. Coinbase, with its
more conservative U.S. regulatory stance, is less likely to move first.
For now, Kraken has planted a flag. In an industry
obsessed with gamification, capital access, and performance-based status,
Breakout gives the exchange a compelling new way to attract and retain
ambitious traders.
Read more: Kraken Enters Prop Trading: Breakout Acquisition Gives Funded Accounts
Kraken’s acquisition of Breakout is more than a
product expansion. It is a signal that prop trading could become a mainstream
fixture in crypto, much like it has in forex.
By blending skill-based
progression, gamified incentives, and capped-risk freeroll dynamics, Kraken is
tapping directly into the ethos of the modern crypto trader.
As more assets, from crypto tokens to blue-chip equities, come on-chain, the potential of prop trading widens even further. In the near future, traders may be able to compete for funded accounts not just in Bitcoin but also in tokenized stocks and beyond.