Crypto exchange Kraken has acquired Breakout, a crypto-native proprietary trading firm, to enable performance-based, leveraged bitcoin trading with funded accounts.

Breakout is a trading platform that allows skilled crypto traders to access up to $200,000 in capital after passing a “rigorous” trading evaluation rather than using their own funds.

This story is an excerpt from the Unchained Daily newsletter.

Breakout’s evaluation-based model has been integrated into Kraken Pro, giving traders direct access to institutional-grade tools and liquidity. Traders will also be able to retain up to 90% of the profits they make.

“Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself,” said Kraken co-CEO Arjun Sethi.

“In a world that is rapidly shifting from who you know to what you know, we want to build systems that reward demonstrated performance, not pedigree.”