Crypto exchange Kraken has completed its acquisition of the futures trading platform NinjaTrader and reported its first quarter revenues jumped 19% year-on-year to $471.7 million.

Kraken said in a May 1 report that its NinjaTrader acquisition would give its US customers access to the traditional derivatives market, aligning with its plans to expand its offerings and be the go-to platform for all types of trading.

NinjaTrader is a registered Futures Commission Merchant with the Commodity Futures Trading Commission. Last month, it rolled out trading for over 11,000 stocks and exchange-traded funds to certain US clients.

The deal, which Kraken dubbed the largest ever between a crypto and traditional finance firm, allows NinjaTrader to expand to the UK, continental Europe and Australian markets and comes as Kraken is preparing for an initial public offering in early 2026. The company is exploring a debt package worth between $200 million and $1 billion to facilitate that transaction.

Kraken revenue, trading volume falls on Trump’s return

Kraken’s $471.7 million revenue in Q1 marked a 19% increase from the year-ago quarter but a 6.8% fall from Q4 2024.

The exchange reported that trading volume fell 9.6% quarter-over-quarter to $208.7 billion while the value of its custodied assets fell 18% to $34.9 billion over the same time.

Kraken attributed the drop to a “slowdown in overall market trading activity” as US President Donald Trump’s threats of implementing sweeping tariffs triggered an 18% fall in the crypto market cap over the quarter.

Key metrics from Kraken’s Q1 report. Source: Kraken

Kraken is one of several crypto platforms that saw record or near-record highs in trading activity in Q4 as Trump’s November election win sparked larger-than-usual market volatility.

Related: Kraken rolls out ETF and stock access for US crypto traders

Kraken said that despite a “softening market,” its adjusted EBITDA  — earnings before interest, taxes, depreciation and amortization — jumped 1% from the previous quarter to $187.4 million.

The firm also saw the number of funded accounts on its platform increase 10% quarter-on-quarter to 3.9 million, signaling “deeper client engagement.”

Reuters reported on April 18 that Kraken restructured its workforce after Arjun Sethi was appointed as co-CEO last October. Sethi has laid off around 400 employees since.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Key takeaways:

Despite weak US manufacturing data, Federal Reserve liquidity plans and strong corporate earnings keep equities and crypto afloat.

The total crypto market capitalization rose 8.5% since March.

Cryptocurrency traders have frequently zoomed in on the need for crypto to show a clear “decoupling” from the stock market, and over the past 10 days, the intraday movements of Bitcoin (BTC) and major altcoins have closely tracked those of the S&P 500, even as trade war developments have dominated market sentiment.

S&P 500 futures (left) vs. Total crypto cap, USD (right). Source: TradingView/Cointelegraph

A decoupling would validate digital assets as an independent class and address growing concerns about a potential global economic recession. This ongoing correlation has led market participants to question whether the cryptocurrency market is destined to follow the stock market’s lead indefinitely, and what conditions would be necessary for a genuine decoupling to occur.

Stock market shows strength despite trade tensions

The S&P 500 reached its peak on Feb. 19 and has since struggled to reclaim the 5,800 level, a support that had held for four months. Despite persistent pressure from US trade disputes with Canada and Mexico, as well as the imposition of new tariffs affecting nearly every major economic region, equities have demonstrated notable resilience.

Chinese state media recently reported that the United States has quietly initiated trade negotiations. Although China officially maintains a 125% retaliatory tariff on US imports, it has granted waivers for sectors such as ethane, semiconductors, and certain pharmaceuticals. The United States, in turn, has partially exempted automakers from new tariffs. These actions suggest that both sides are gradually making concessions.

There is a reasonable possibility that the S&P 500 established a bottom at 4,835 on April 7, with further gains from the current 5,635 level remaining plausible. The stock market has responded positively to robust first-quarter earnings, as companies adapt to tariffs by relocating production outside China or expanding operations within the United States.

For instance, Microsoft reported a 13.2% year-over-year increase in revenue, with higher margins and strong demand for artificial intelligence. Meta also delivered earnings and revenue that exceeded market expectations on April 30. These results have alleviated concerns about a potential AI bubble or the risk that the trade war could force companies to reduce investment.

The market’s focus shifts to the Federal Reserve

Rather than concentrating on the recent decline in US PMI manufacturing data-which reached a five-month low in April, market participants are closely monitoring the Federal Reserve’s next policy moves. Following a year of balance sheet reduction, the Fed is now considering asset purchases to help ease selling pressure.

An increase in liquidity is typically favorable for risk-oriented assets. Therefore, even if a full decoupling does not occur, cryptocurrencies could still benefit from a more supportive macroeconomic environment.

S&P 500 futures (left) vs. Total crypto cap, USD (right). Source: TradingView/Cointelegraph

Despite the short-term correlation, the cryptocurrency market has outperformed equities in recent months. Since March, the total crypto market capitalization has risen by 8.5%, while the S&P 500 has declined by 5.3%. Over a six-month period, this divergence becomes even more pronounced: the total crypto market cap is up 29%, while the S&P 500 is down 2%. It is therefore inaccurate to suggest that these markets move in perfect synchrony, particularly when viewed over longer timeframes.

Related: Bitcoin to $1M by 2029 fueled by ETF and gov’t demand — Bitwise exec

It is still premature to declare a definitive bottom for the S&P 500 or to conclude that the trade war has been resolved. An economic recession would likely have negative implications for both markets. However, the current strength in equities indicates reduced risk aversion among investors. For the time being, the elevated correlation between cryptocurrencies and stocks may represent the most favorable scenario.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Tether, the company behind the world’s largest stablecoin by market capitalization, has released its financials for the first quarter of 2025, disclosing nearly $120 billion in exposure to US Treasurys and over $1 billion in operating profit.

According to Tether’s Q1 2025 financial report, the company’s assets include $98.5 billion in direct US Treasury bills, along with over $23 billion in additional exposure through repurchase agreements and other cash-equivalent assets.

Excerpt from Tether’s Q1 2025 financial report. Source: Tether

According to the announcement, Tether holds $5.6 billion in excess of reserves for its USDt (USDT) stablecoin, down from $7.1 billion in excess from the last quarter of 2024. The stablecoin has a market capitalization of $149 billion as of May 1.

“Circulating supply of USDT grew by approximately $7 billion in Q1, with a 46 million increase in user wallets,” it said.

The company’s excess capital continues to fund strategic investments, with more than $2 billion allocated in renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure. 

The stablecoin market is broadly dominated by tokens pegged to the US dollar, with USDT and Circle’s USDC holding a combined 87% share. According to the US Treasury’s Q1 2025 report, the market cap for dollar-backed stablecoins is poised to reach $2 trillion by 2028.

European Union officials have recently raised concerns about the risks of overreliance on dollar-pegged stablecoins. According to the Bank of Italy, disruptions in the stablecoins market or the underlying bonds could have “repercussions for other parts of the global financial system.”

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight