IG Sells Small Exchange for $100 Million to Enhance Crypto Strategy

Investment broker IG Group has completed the sale of its future exchange platform, Small Exchange Inc., to Payward Inc., the parent company of Kraken, for a total of $100 million (£74.9 million). This transaction, finalized shortly after IG’s acquisition of Small Exchange in 2023, comprises $32.5 million in cash and $67.5 million in Payward stock. The deal has resulted in a post-tax gain of approximately £73.3 million for IG, bolstering its regulatory capital resources by £22.7 million.

The sale positively influenced IG’s share price, which increased by 0.56 percent to 1,076p during early morning trading. This marks a remarkable rise of 9.13 percent year to date.

Strategic Partnership and Future Plans

As part of the transaction, IG has entered into a partnership agreement with Kraken, allowing IG to serve as a platform for customers to access and trade various cryptocurrency products, including Bitcoin and Ethereum. Breon Corcoran, chief executive of IG Group, stated, “The transaction represents a significant return on the Group’s acquisition of Small Exchange and enables us to collaborate with Kraken on the distribution of new crypto products.”

This strategic move reflects IG’s ongoing efforts to transition into a multi-asset platform while enhancing its cryptocurrency offerings. In September, the company announced its acquisition of Independent Reserve, a prominent Australian crypto exchange, which is anticipated to be completed by early 2026. IG has also secured its cryptoasset licence from the Financial Conduct Authority, which supports its aim to expand market share and cryptocurrency options in the UK.

Investment in Crypto Infrastructure

Alongside its acquisitions, IG has taken an active role in the broader cryptocurrency market by participating in a funding round for Zero Hash Holdings, a leading infrastructure provider for crypto, stablecoins, and tokenized assets. Earlier this year, IG acquired an 8.1 percent stake in Zero Hash, further solidifying its commitment to establishing a formidable presence in the cryptocurrency sector.

Michael Healy, UK managing director at IG, described the sale of Small Exchange as “a significant step forward” in tapping into the “UK’s rapidly growing crypto sector.” This decision to divest aligns with IG’s broader strategy to diversify its product offerings and capitalize on the increasing demand for cryptocurrency trading.

The sale marks a pivotal moment for IG Group as it continues to navigate the evolving landscape of digital finance and cryptocurrency, seeking to leverage partnerships and acquisitions to strengthen its position in the market.