Kraken Launches Crypto-Collateral Futures in Europe
- Kraken enables EU clients to trade perpetual futures using BTC, ETH, or stablecoins.
- The platform operates under MiFID II and MiCA oversight for full regulatory compliance.
- Traders gain faster access, reduced costs, and up to 10x leverage on over 150 markets.
Kraken has expanded its European offering by allowing clients to use crypto assets as collateral for perpetual futures trading. The feature is now live on Kraken Pro. It enables EU traders to post Bitcoin, Ethereum, or select stablecoins as collateral for trading across 150+ perpetual futures markets.
The move makes Kraken one of the first European regulated exchanges to introduce fully compliant crypto-collateralized derivatives. The feature offers traders more flexibility in capital management, lower conversion costs, and quicker access to liquidity.
Expanding Regulated Access to Crypto Derivatives
The announcement, made on November 3, builds on Kraken’s commitment to regulated innovation within Europe’s financial framework. The exchange operates under the Markets in Financial Instruments Directive II (MiFID II). It also holds a Markets in Crypto-Assets (MiCA) license from the Central Bank of Ireland. Oversight also comes from the Cyprus Securities and Exchange Commission (CySEC), ensuring that all activity meets European regulatory standards.
Alexia Theodorou, Kraken’s Director of Derivatives, said the move completes the exchange’s EU product lineup. Kraken first introduced derivatives trading across the bloc in May. Since then, it has worked closely with regulators to ensure crypto collateral can fit safely within existing financial systems.
“When we launched under MiFID, we didn’t yet have a regulated European crypto custodian live,” stated Theodorou. “Now, with MiCA and MiFID compliance, we can offer crypto collateral safely under a European regime.”
Kraken now uses its Irish entity to custody client collateral while leveraging its UK Multilateral Trading Facility (MTF) to provide global liquidity. This structure allows European traders to benefit from international depth while staying within EU regulatory guardrails.
Crypto Collateral and Risk Management Framework
The new setup lets traders post crypto assets directly without converting them into fiat first. This facilitates almost instant access to funds for margin trading, cuts down on delays, and increases capital efficiency. The feature applies to more than 150 perpetual futures pairs and allows clients to use leverage of up to 10x.
Kraken uses margin haircuts based on volatility to control exposure. These haircuts make sure the value of collateral reflects market conditions by varying based on the asset’s risk profile. The exchange converts all collateral values into USD for liquidation and margin calculations, maintaining consistency and transparency.
“Depending on the volatility of the crypto collateral, a different haircut applies to reflect the risk,” Theodorou explained. She added that this approach ensures that even during market swings, collateral values remain properly aligned with exposure.
The platform has already received strong interest from institutional clients who prefer to post crypto rather than fiat. Theodorou said the requests came mostly from crypto-native firms seeking more flexibility within a regulated trading environment.
Related: European Commission Eyes SEC-Like Crypto, Stocks Supervisor
Kraken’s system also enables full custody for clients under MiFID II, giving users the security of trading within Europe’s strongest financial protections. The exchange’s strategy applies traditional compliance guidelines to cryptocurrency derivatives. It provides traders with the advantages of speed and exposure to digital assets without compromising oversight.
The exchange’s expansion supports its broader goal of building the most comprehensive perpetual futures platform in Europe. The combination of MiFID, MiCA, and UK MTF frameworks allows Kraken to unify liquidity without separating European and international markets.
“The fact that we have both a UK-regulated MTF and a MiFID entity means we didn’t need to split liquidity,” Theodorou noted. “This makes us unique and the biggest European perpetual offering.”
The development further strengthens Kraken’s position as a bridge between traditional finance and digital asset innovation. It also signals a broader trend among exchanges moving toward regulated, crypto-native trading solutions that align with Europe’s evolving market structure.
