Kraken’s Breakout Bet Could Normalize Prop Trading Across the Crypto Industry
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%.
