Kraken has introduced a new feature for clients on its regulated trading platform, marking a significant expansion of its European offerings.
Kraken's European clients can now utilize Bitcoin, Ethereum, and select stablecoins as collateral for perpetual futures trading on Kraken Pro. This development, announced on November 3rd, positions Kraken as one of the first regulated exchanges in the EU to support crypto-collateralized derivatives under full regulatory compliance. The enhancement aims to improve capital efficiency for traders while adhering strictly to regulatory standards.
Crypto Collateral Now Available for EU Futures Trading
The new feature empowers traders to use crypto assets directly as collateral, eliminating the need to convert them to fiat currency. This process is designed to unlock faster access to liquidity and reduce transaction costs. The update is immediately available across more than 150 perpetual futures markets and further extends Kraken’s regulated derivatives offering within the European Union.
Kraken’s expansion is underpinned by its Markets in Crypto-Assets (MiCA) license issued by the Central Bank of Ireland and its oversight by the Cyprus Securities and Exchange Commission. The platform implements margin "haircuts" based on volatility to manage risk effectively. For liquidation and margin calculations, collateral is converted to USD.
With full custody managed under the Markets in Financial Instruments Directive II (MiFID II) and MiCA supervision, users of Kraken Pro can now engage in trading with up to 10x leverage. This leverage can be applied using BTC, ETH, or approved stablecoins as margin.
A Step Forward for Regulated Derivatives in Europe
Kraken's initiative is expected to appeal to both institutional and retail traders seeking compliant, crypto-native trading tools. This move also solidifies Kraken's leadership position in Europe's growing regulated derivatives market. Furthermore, it signifies an increased alignment between European regulators and digital asset platforms, especially as MiCA continues to broaden access for licensed operators.
This announcement follows a strong third quarter for Kraken, which reported $648 million in revenue. This represents a 50% increase from the second quarter, attributed to new product integrations and a rise in trading volume following the acquisition of NinjaTrader.
Kraken's strategic approach may accelerate the adoption of crypto derivatives by hedge funds and corporate treasuries. These entities are increasingly seeking compliant avenues for leveraged digital asset exposure as European regulations become more defined.