Kraken Integrates Crypto Collateral for European Derivatives: The Block
Kraken now allows EU traders to post crypto as margin.
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.
Kraken unlocks crypto collateral for derivatives across the EU https://t.co/Pc5vvuHUyU
— The Block (@TheBlock__) November 3, 2025
Jack Inabinet
Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.
