Kraken Integrates Crypto Collateral for European Derivatives: The Block

Kraken is expanding its European derivatives offerings. The crypto exchange's Director of Derivatives, Alexia Theodorou, told The Block that traders in the European Union can now post cryptocurrencies as collateral.

What’s the Scoop?

• Crypto Collateral Goes Live: European traders can now post BTC, ETH, and other volatile digital assets as collateral without leaving the EU’s regulatory perimeter. More volatile assets will have larger applied “haircuts” to reflect their added risks.
• New Licenses: Kraken has extended its regulated footprint by combining a MiFID license in Cyprus, MiCA authorization in Ireland, and an MTF (Multilateral Trading Facility) approval from the UK’s Financial Conduct Authority. The tri-license setup allows Kraken to host a unified derivatives order book in the EU and UK while maintaining compliance across jurisdictions.
• Institutional Demand: Theodorou noted strong interest from institutional clients — “predominantly crypto natives” — who have been waiting for a compliant way to trade perps with crypto collateral under EU oversight.