• Kraken allows European traders to use Bitcoin Ethereum and stablecoins as collateral for futures trading.
• Traders can now access faster liquidity and lower costs without converting crypto to fiat on Kraken Pro.
• Kraken Pro users can trade with up to 10x leverage under full EU regulatory compliance.

Kraken has expanded its European services, allowing clients to use crypto as collateral for perpetual futures trading. Bitcoin, Ethereum, and a few stablecoins are now eligible as margin on Kraken Pro. The update is supposed to increase capital efficiency without going against the EU regulations. Cryptos can be listed by trades, without being turned into fiat, lowering the cost of transacting and enhancing access to liquidity.

The feature is now active across more than 150 perpetual futures markets. It marks one of the first instances of regulated crypto-collateralized derivatives under EU oversight. Kraken’s offering is supported by its Markets in Crypto-Assets license from the Central Bank of Ireland. Additionally, the platform operates under the Cyprus Securities and Exchange Commission’s supervision. Risk is managed using volatility-based margin haircuts. Collateral is converted to USD for margin calculations and liquidation.

Enhanced Leverage for Compliant Trading

Kraken Pro users can now trade with up to 10x leverage using approved crypto assets as collateral. BTC, ETH, and selected stablecoins can serve as margin under the new framework. The platform ensures full custody under the Markets in Financial Instruments Directive II. MiCA supervision also governs the derivatives trading offering. This combination strengthens compliance while giving traders access to crypto-native tools.

The change appeals to institutional and retail traders seeking regulated exposure to leveraged digital assets. It also supports Kraken’s growth within Europe’s expanding derivatives market. The initiative reflects a closer alignment between regulators and digital asset platforms. MiCA continues to broaden access for licensed operators across the region.

Impact on the European Derivatives Market

Kraken’s update may encourage hedge funds and corporate treasuries to adopt crypto derivatives. Compliant, crypto-collateralized trading reduces the need for fiat conversions and streamlines margin management. It provides faster liquidity and operational efficiency for market participants. The move positions Kraken as a leading regulated derivatives platform in Europe.

According to the market observers, the formation will hasten the institutionalization of digital asset derivatives. Once the regulations are made clear, licensed platforms will be able to provide safer and transparent trading options. Traders gain the ability to optimize capital while staying within EU compliance frameworks.

Growth Backed by Strong Performance

Kraken announced this quarterly revenue of $648 million, a growth of half the amount before. Expansion was preceded by the additions of new products and the purchase of NinjaTrader. Higher trading volumes contributed to the surge, highlighting demand for compliant crypto tools. In July, Kraken launched tokenized US stocks to global users through xStocks with 24-hour weekday trading and low entry amounts.

The expansion into crypto-collateralized derivatives complements Kraken’s strategy to capture market share in regulated European markets. This move strengthens Kraken’s footprint in the EU and improves access to regulated crypto trading for a growing client base.

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