Quick Breakdown
- •Crypto Collateral Enabled: EU traders can now use BTC, ETH, and stablecoins as collateral for perpetual futures.
- •Regulated Expansion: Kraken operates under MiCA and MiFID II oversight in Ireland and Cyprus.
- •Institutional Appeal: The move supports broader adoption of regulated crypto derivatives in Europe.
Kraken Introduces Crypto Collateral for EU Futures Trading
Kraken has unveiled a new feature for its European clients, allowing traders to use Bitcoin (BTC), Ethereum (ETH), and select stablecoins as collateral for perpetual futures on its regulated Kraken Pro platform.
Announced on November 3, the update positions Kraken as one of the first fully regulated exchanges in the European Union to support crypto-backed derivatives. This development enhances capital efficiency for traders while ensuring compliance with EU financial regulations.
The feature allows traders to post crypto assets directly instead of converting them to fiat currencies, unlocking faster access to liquidity and reducing transaction costs.
Available immediately across over 150 perpetual futures markets, the initiative strengthens Kraken’s regulated derivatives presence within the EU.
Kraken’s operations are backed by a Markets in Crypto-Assets (MiCA) license from the Central Bank of Ireland and supervision from the Cyprus Securities and Exchange Commission. To manage market volatility, Kraken applies margin “haircuts” and converts collateral to USD for liquidation and margin calculations.
Under the Markets in Financial Instruments Directive II (MiFID II) framework, Kraken Pro users can now trade with up to 10x leverage using approved digital assets as margin.
Strengthening Europe’s Regulated Derivatives Landscape
Kraken’s latest expansion highlights the growing alignment between European regulators and licensed crypto platforms. The move appeals to both institutional and retail traders seeking compliant, crypto-native trading solutions.
The announcement follows a strong third quarter for Kraken, which reported $648 million in revenue—a 50% increase from Q2—driven by higher trading volumes and the acquisition of NinjaTrader.
With MiCA regulations setting a clear path for digital asset compliance, Kraken’s approach could accelerate the adoption of crypto derivatives by hedge funds and corporate treasuries looking for regulated exposure to leveraged digital assets.
Additionally, Kraken announced the expansion of its tokenized equities platform, xStocks, to European customers, citing growing interest in blockchain-powered exposure to traditional assets.