Cryptocurrency exchange Kraken has announced a major expansion of its European derivatives platform, allowing traders to use cryptocurrencies as collateral for perpetual futures contracts across the European Economic Area (EEA). The move, revealed on November 3, 2025, builds on Kraken’s May 2025 derivatives launch, which initially supported only fiat-based collateral.
A Regulated Leap Forward for EU Crypto Trading
The new feature operates under the MiFID and MiCA regulatory frameworks, enabled by Kraken’s licenses from the Central Bank of Ireland and its MiFID-regulated entity in Cyprus. This dual compliance structure allows the platform to offer crypto-collateralized derivatives trading within the EU, a first among major global exchanges operating under full regulatory oversight.
Traders on Kraken Pro can now use Bitcoin (BTC), Ethereum (ETH), and select stablecoins as collateral to access more than 150 perpetual futures markets, improving speed, flexibility, and capital efficiency.
Institutional Adoption and Risk Controls
Kraken reported strong institutional demand for crypto-backed margin functionality, describing the new service as a direct response to client requests for regulated, capital-efficient instruments. To manage volatility risks, Kraken has implemented haircuts on collateral assets, ensuring exposure limits remain within EU compliance standards.
The platform also leverages a UK-regulated Multilateral Trading Facility (MTF) to maintain a unified global liquidity pool for European clients, enhancing trade execution and market depth.
Strengthening Europe’s Regulated Crypto Infrastructure
This development highlights Kraken’s broader strategy to cement its position as a compliant derivatives provider in Europe. By combining its MiCA and MiFID authorizations, the exchange is bridging the gap between traditional financial oversight and the growing digital asset derivatives market.
As institutional interest continues to rise, Kraken’s crypto-collateralized futures could become a cornerstone for professional traders seeking regulated exposure to digital assets in the EU, marking another step toward the maturation of Europe’s crypto financial ecosystem.