Kraken’s purchase of proprietary trading firm Breakout marks a milestone as a major crypto exchange directly embraces prop trading, blending institutional infrastructure with trader skill evaluation. The prop trading sector is experiencing rapid growth, driven by rising global interest and a projected market value of $14.5 billion by 2033, especially within crypto-native firms. This shift signals increased competition and platform innovation, including AI-integrated trader development, as institutional players and new entrants vie to professionalize and expand the market.