Global cryptocurrency exchange Kraken has introduced a new feature for its European clients, enabling the use of Bitcoin (BTC), Ethereum (ETH), and stablecoins as collateral for perpetual futures trading on Kraken Pro.
The launch marks a major milestone for the exchange, making Kraken one of the first fully regulated platforms in the European Union to support crypto-collateralized derivatives trading under MiFID II and the Markets in Crypto-Assets (MiCA) framework.
Crypto Collateral Comes to EU-Regulated Futures
With this new functionality, traders can now post approved digital assets as collateral without converting them into fiat, reducing friction and improving capital efficiency. The feature is available immediately across more than 150 perpetual futures markets, offering up to 10x leverage.
By applying volatility-based margin haircuts and converting collateral to USD for liquidation and margin calculations, Kraken ensures both flexibility and strong risk management.
The update strengthens Kraken’s regulated derivatives offering in Europe, allowing users to access futures markets under the supervision of the Central Bank of Ireland and the Cyprus Securities and Exchange Commission (CySEC).
A Step Forward for Regulated Crypto Derivatives in Europe
The move underscores growing alignment between European regulators and digital asset service providers as the MiCA framework continues to expand access for licensed operators. Kraken’s new offering caters to institutional and retail traders seeking compliant exposure to leveraged crypto products.
“This marks another major step in giving European traders efficient, compliant access to global crypto markets,” a Kraken spokesperson said.
The development comes amid a strong financial quarter for Kraken, which reported $648 million in revenue in Q3, up 50% from Q2, driven by increased trading volume and recent product integrations, including the acquisition of NinjaTrader.
As Europe strengthens its position as a regulated crypto hub, Kraken’s innovation may accelerate institutional adoption of crypto derivatives by hedge funds, asset managers, and corporate treasuries seeking compliant leveraged exposure to digital assets.
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