Kraken is enhancing its derivatives offering in the European Union by unlocking a key feature for traders: the ability to use cryptocurrencies as collateral, according to an announcement made on Monday.
This strategic move completes the offering of its MiFID-regulated platform, which launched in May, and consolidates its position as a major player in the European perpetual futures market.
According to Alexia Theodorou, Kraken's director of derivatives, the initial launch required exclusively fiat collateral due to regulatory discussions that preceded the finalization of the EU's MiCA framework.
The green light to now accept cryptocurrency collateral is a direct result of Kraken's extensive engagement with regulators such as CySEC and ESMA, demonstrating how the evolution of crypto regulations is enabling more native digital asset services within a regulated environment.