In an audacious move that can only be likened to a skilful squid launching itself out of the water and hoping for the best, Kraken has thrown caution to the eight-headed winds. They’ve expanded their European offering, adding a new pastry to their crypto-regulated trading platter. And, dear reader, it’s one splendid pie!
- Kraken now allows EU clients to tout Bitcoin, Ethereum, and stablecoins as collateral for futures – actually more like hostages of futures.
- Compliant as a grown-up at a tea party with MiFID II and MiCA, offering a lever-locked chamber up to 10x. Strap in tight – it’s a ride!
- This marks an expansion of regulated access to crypto derivatives across Europe, much like a garden expanding its blooms after a rainstorm.
In a move straight out of their Nov. 3 brainstorm session, Kraken stands as one of the first regulated exchanges to allow EU traders to use crypto as collateral for perpetual futures, all under the watchful eye of regulation. Traders can finally breathe easier, knowing they wouldn’t accidentally fund an entire underground parking lot.
Crypto collateral enters the EU futures stage
The feature lets traders post crypto assets, intelligently choosing not to transform them into fiat-the digital equivalent of exchanging a spell book for a sack of tea. With this update, Kraken offers faster access to liquidity and fewer transaction costs over 150 perpetual futures markets in the EU.
Supported by a sturdy Markets in Crypto-Assets license from the Central Bank of Ireland and oversight from the Cyprus Securities and Exchange Commission, Kraken is applying volatility-based margin “haircuts.” Rest assured, collateral is converted to USD before anyone can call it quits, ensuring that liquidation is just a properly calculated number game.
With full custody from the Markets in Financial Instruments Directive II and MiCA supervision, traders can now leverage up to 10x, using BTC, ETH, or approved stablecoins. Consider these tokens the Lyra Harp that enables betting with a fair amount of control.
A Bold Step on Europe’s Regulated Derivatives Dance Floor
Kraken’s move appeals to institutional and retail traders who desire compliance with a side of digital daily bread. This initiative bolsters Kraken’s leadership in Europe’s compliant derivatives market and reveals a cozy pact between European regulators and digital platforms, who seem to have finally figured out how to even shake hands properly.
This announcement washes over a successful quarter for Kraken, with $648 million in revenues – a 50% rise, akin to a plant finally accepting that yes, water is good for it. The uptick came with a bundle of new product integrations and an increase in trading volume following the absorption of NinjaTrader, their spiritual cousin from the trading game.
Crucially, Kraken’s strategy could potentially make adult hedge funds and corporate treasuries yearn for crypto derivatives like bears in February yearn for honey. With clearer European regulations, the future looks an unmistakably exhilarating version of today.
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2025-11-04 07:13