Kraken, a leading cryptocurrency exchange, is making significant strides in the European market with the expansion of its derivatives platform. Announced on November 3, 2025, this new feature allows traders to utilize cryptocurrencies as collateral for perpetual futures contracts across the European Economic Area, marking a pivotal moment for crypto trading in the region. The analytical report published in the material substantiates the following: this move is expected to enhance liquidity and attract a broader range of investors.
Expansion of Derivatives Trading on Kraken
The latest update builds on Kraken's previous derivatives launch in May 2025, which was limited to fiat-based collateral. With this expansion, traders can now leverage Bitcoin (BTC), Ethereum (ETH), and select stablecoins as collateral, gaining access to over 150 perpetual futures markets. This enhancement is designed to improve trading speed, flexibility, and capital efficiency for users on Kraken Pro.
Regulatory Compliance and Licensing
Operating under the MiFID and MiCA regulatory frameworks, Kraken's new service is backed by licenses from the Central Bank of Ireland and its MiFID-regulated entity in Cyprus. This dual compliance structure positions Kraken as a pioneer among major global exchanges, offering crypto-collateralized derivatives trading within the EU under full regulatory oversight.
Response to Institutional Demand
In response to strong institutional demand for crypto-backed margin functionality, Kraken has tailored this service to meet client requests for regulated and capital-efficient trading instruments. To mitigate volatility risks, the exchange has implemented haircuts on collateral assets, ensuring that exposure limits adhere to EU compliance standards. Additionally, Kraken utilizes a UK-regulated Multilateral Trading Facility (MTF) to maintain a unified global liquidity pool, enhancing trade execution and market depth for its European clients.
Commitment to Compliance and Innovation
This strategic move underscores Kraken's commitment to establishing itself as a compliant derivatives provider in Europe, effectively bridging the gap between traditional financial regulations and the burgeoning digital asset derivatives market.
In a strategic move, BlockDAG BDAG has announced a $900,000 budget for its upcoming listing on Kraken, highlighting its focus on long-term stability. This initiative contrasts with Kraken's recent expansion of its derivatives platform, which aims to enhance trading opportunities. For more details, see read more.








