Kraken Acquires Proprietary Trading Platform ‘Breakout’

Key Highlights

• Kraken announces the acquisition of proprietary trading platform, Breakout. 
• This acquisition will enhance Kraken’s offerings for advanced traders by integrating Breakout’s model
• This platform allows skill traders to access up to $200,000 in notional capital after passing an evaluation process

On September 4, the leading cryptocurrency exchange, Kraken, announced the acquisition of an evaluation-based proprietary trading platform, Breakout. 

[ ZOOMER ]

KRAKEN ACQUIRES BREAKOUT, THE PROPRIETARY TRADING PLATFORM CREATED BY TRADERMAYNE AND CRYPTOCRED: RTRS

— zoomer (@zoomerfied) September 4, 2025

What is Breakout and proprietary trading?

Breakout is a service for crypto traders. Instead of risking your own cash, you can trade with Breakout’s money. If you can show you have trading talent through an evaluation, they will fund your account with as much as $200,000. 

One can think of proprietary trading as a company that makes money not by selling products to customers, but by investing and trading its own money in the stock market, crypto, or other financial markets. This is the main idea behind proprietary trading or prop trading.

Instead of using a customer’s money and charging them a fee, these platforms use their own massive pool of capital to trade and generate profits directly for themselves. 

Why Kraken Acquired Breakout?

This acquisition is expected to enhance Kraken’s offerings for advanced traders by integrating Brakout’s model. This will allow successful traders to retain up to 80% of profits from funded accounts, with strategies deployable across over 50 crypto pairs and up to 5x leverage on assets like Bitcoin (BTC) and Ethereum (ETH).

This acquisition will allow traders to scale up their trading strategy as this collaboration will open a clear, low-cost pathway for Kraken’s vast user base to trade with up to $200,000, which requires no initial deposit beyond a one-step evaluation fee.

“Now backed by Kraken’s infrastructure and global platform, Breakout allows traders to size up and scale their edge with zero personal capital at risk,” the Kraken team stated in an official announcement. 

With the acquisition of Breakout, the crypto exchange will expand its offerings beyond traditional spot and futures trading. According to its official website, Breakout’s prop trading model comes with a performance-based pathway for traders to scale strategies without needing personal capital. 

This approach of Breakout matches with Kraken’s plan to reduce barriers and give full financial freedom in the crypto sector. 

Kraken Co-CEO Arjun Sethi mentioned that Breakout’s evaluation-first approach verifies “risk discipline, strategy consistency, and real market decision making under pressure.”

Kraken’s Meeting with the SEC

Kraken recently met with the U.S. Securities and Exchange Commission (SEC). They talked about turning traditional assets into tokens. This meeting happened on August 25, 2025. The SEC wrote down what was discussed and shared it publicly.

“On August 25, 2025, Crypto Task Force Staff met with representatives from Payward, Inc., Kraken Securities LLC, and Wilmer Cutler Pickering Hale and Dorr LLP. The topic discussed was approaches to addressing issues related to the regulation of crypto assets,” stated in an official document released by the SEC. 

The crypto exchange explained how a token trading system could work. They want to use blockchain to make trading faster and cheaper. They also talked about existing rules. Kraken asked for clear guidance so they can follow the law while trying new ideas.

The main benefits of tokenization are:

• Trading can happen 24 hours a day, all over the world.
• Money moves in minutes, not days.
• People can buy small parts of expensive assets.
• Costs are lower for everyone.
• More people can invest in more things.

The SEC wants to use the current rules for these new tokens. They said protecting investors is very important.

Kraken is already working on tokenized assets outside the U.S. They offer tokens for popular stocks like Apple and Tesla. These tokens are on blockchains like Solana and BNB Chain. This lets people invest using crypto technology.