Kraken is significantly boosting its derivatives offerings for European traders, allowing them to use cryptocurrencies as collateral for perpetual futures (perps). This move was confirmed by Alexia Theodorou, Kraken's Director of Derivatives.
Key Developments
- Crypto Collateral Live: European Union (EU) traders can now post Bitcoin (BTC), Ethereum (ETH), and other digital assets as collateral within the EU's regulatory framework. More volatile assets will be subject to larger "haircuts" (discounts on collateral value) to manage risk.
- Enhanced Regulatory Footprint: Kraken secured a tri-license setupto facilitate this expansion and ensure compliance:
- MiFID license in Cyprus.
- MiCA authorization in Ireland.
- MTF (Multilateral Trading Facility) approval from the UK’s Financial Conduct Authority (FCA).
- Unified Trading: This multi-jurisdictional compliance allows Kraken to host a single, unified derivatives order book for both EU and UK clients.
- Targeting Institutional Demand: The expansion directly addresses strong interest from institutional clients—especially "crypto natives"—who require a compliant, EU-regulated environment to trade perps using their digital assets as collateral.
In summary, Kraken is positioning itself as a major, compliant player in the European derivatives market by offering the flexibility of crypto collateral, a feature highly sought after by institutional traders.
November 2025, Cryptoniteuae