Kraken has taken a notable step in expanding its European offering, introducing a new feature for clients on its regulated trading platform.
- Kraken now lets EU clients use BTC, ETH, and stablecoins as collateral for futures.
- Fully compliant with MiFID II and MiCA, offering up to 10x leverage.
- Expands regulated access to crypto derivatives in Europe.
Kraken’s European clients can now use Bitcoin, Ethereum, and select stablecoins as collateral for perpetual futures trading on Kraken Pro.
The move, announced on Nov. 3, makes Kraken one of the first regulated exchanges in the EU to support crypto-collateralized derivatives under full regulatory compliance, improving capital efficiency for traders while maintaining full regulatory compliance.
Crypto collateral now available for EU futures trading
The new feature allows traders to post crypto assets instead of converting them to fiat, unlocking faster access to liquidity and reduced transaction costs. Available immediately across more than 150 perpetual futures markets, the update extends Kraken’s regulated derivatives offering within the EU.
Kraken’s expansion is supported by its Markets in Crypto-Assets license from the Central Bank of Ireland and oversight from the Cyprus Securities and Exchange Commission. The platform applies volatility-based margin “haircuts” to manage risk, converting collateral to USD for liquidation and margin calculations.
With full custody under the Markets in Financial Instruments Directive II and the MiCA supervision, Kraken Pro users can now trade with up to 10x leverage using BTC, ETH, or approved stablecoins as margin.
A step forward for regulated derivatives in Europe
In addition to appealing to institutional and retail traders looking for compliant, crypto-native tools, Kraken’s move solidifies its leadership in Europe’s expanding regulated derivatives market. It also shows increased alignment between European regulators and digital asset platforms, as MiCA continues to expand access for licensed operators.
The announcement follows a successful quarter for Kraken, which saw $648 million in revenue in Q3, a 50% increase from Q2, thanks to new product integrations and an increase in trading volume following the acquisition of NinjaTrader.
Kraken’s strategy may hasten the adoption of crypto derivatives by hedge funds and corporate treasuries seeking compliant exposure to leveraged digital assets as European regulations become clearer.
