Kraken’s European clients can now use Bitcoin, Ethereum, and select stablecoins as collateral for perpetual futures trading on Kraken Pro.
Announced on Nov. 3, the update positions Kraken among the first regulated exchanges in the EU to offer crypto-collateralized derivatives under full regulatory compliance. The move enhances capital efficiency for traders while maintaining strict adherence to EU regulations.
Crypto Collateral Now Available for EU Futures
The new feature allows traders to post crypto assets directly as collateral, eliminating the need to convert to fiat. This provides faster access to liquidity and reduces transaction costs. The option is available immediately across more than 150 perpetual futures markets, expanding Kraken’s regulated derivatives offerings in Europe.
Kraken’s expansion is supported by its Markets in Crypto-Assets (MiCA) license from the Central Bank of Ireland and oversight by the Cyprus Securities and Exchange Commission. The platform uses volatility-based margin “haircuts” to manage risk, converting collateral to USD for liquidation and margin calculations.
Under full custody frameworks of the Markets in Financial Instruments Directive II (MiFID II) and 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
This move appeals to both institutional and retail traders seeking compliant, crypto-native tools, strengthening Kraken’s leadership in Europe’s regulated derivatives market. It also reflects growing alignment between European regulators and digital asset platforms as MiCA continues to expand opportunities for licensed operators.
The announcement follows a strong quarter for Kraken, which reported $648 million in revenue for Q3—a 50% increase from Q2—driven by new product integrations and higher trading volumes following the acquisition of NinjaTrader.
Kraken’s strategy may accelerate adoption of crypto derivatives by hedge funds and corporate treasuries seeking compliant leveraged exposure, as regulatory clarity in Europe improves.
