Global cryptocurrency exchange Kraken has entered the prop trading market by acquiring Breakout, a startup based in Tampa, Florida. With this acquisition, Kraken will introduce a merit-based capital allocation system, significantly expanding its structure to distribute up to 90% of profits to experienced traders.
Breakout is a fund matching platform that provides traders with up to $200,000 (approximately KRW 278 million). Its unique feature is that funds are distributed to traders who demonstrate risk management and strategy execution capabilities, rather than simply capital holdings. Kraken Co-CEO Arjun Sethi stated, "We will create a structure where funds are distributed based on skill, not capital. We will strengthen the incentive system to ensure that those who demonstrate performance are appropriately rewarded."
Proprietary trading is a structure where investors manage the company's funds, rather than their own, and share in the profits on a fixed basis. The Breakout platform, which allows users to take up to 90% of total profits, is attracting attention as an attractive model for experienced traders. In particular, it supports over 50 trading pairs, including Bitcoin (BTC) and Ethereum (ETH), and leveraged contracts, providing practical opportunities for experienced traders.
This acquisition is interpreted as a strategic move by Kraken to blur the lines between traditional finance and digital assets. This structure, which allows users to participate in global markets solely through trading capabilities, rather than capital, aligns with the decentralized spirit, a core value of the virtual asset industry. Breakout is expected to leverage Kraken's global network to accelerate platform expansion.
This decision carries significance beyond a simple acquisition. A proprietary trading system centered on trading prowess, rather than access to capital, is likely to spark talent discovery and innovation in the cryptocurrency market's trading structure.
