Kraken Launches Crypto Derivatives Service for Australian Wholesale Market

Kraken, a prominent cryptocurrency exchange, has introduced a licensed crypto derivatives service specifically for wholesale investors in Australia.

This service allows large-scale and institutional clients to access regulated derivatives trading tied to cryptocurrency prices without requiring direct ownership of the assets.

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Kraken Expands Crypto Offerings in Australia

This latest development disclosed in a blog post signifies Kraken’s ongoing commitment to compliance with Australia’s regulatory framework as it aims to cater to sophisticated investors seeking advanced trading solutions.

As of November 3, eligible clients can use Kraken’s platform to trade crypto derivatives. The exchange has designed the service with features tailored to meet the specific needs of high-volume investors, and it is accessible through the Kraken Pro app.

Clients can verify their eligibility and apply through the app, streamlining the process for users interested in exploring crypto derivatives options.

Kraken’s new crypto derivatives platform includes a suite of tools and features tailored for institutional investors.

Through its Australian financial services-licensed broker, Kraken now offers multi-collateral support for derivatives, which allows clients to utilize various forms of collateral, including fiat, stablecoins, and other cryptocurrencies.

These options provide added flexibility, allowing investors to manage risk more effectively.

Additionally, Kraken’s platform offers a range of risk management tools and trading strategies crafted to enhance asset security.

This approach aims to allow investors to manage potential losses effectively, although Kraken warns that some crypto derivatives carry significant risk, where losses could exceed the initial investment.

Jonathan Miller, Kraken’s general manager for Australia, emphasized the importance of the platform for meeting the needs of wholesale clients who are looking to execute “advanced trading strategies using a licensed broker.”

According to Miller, Australia has long been “a cornerstone” for Kraken’s global operations. He also noted the importance of maintaining strict regulatory compliance to unlock greater institutional demand for digital assets.

Kraken’s Commitment to Regulatory Compliance

Kraken’s launch of its crypto derivatives service is part of its broader strategy to establish a strong presence in regulated markets worldwide.

As the demand for institutional-grade crypto products grows, Kraken’s move into Australia’s wholesale derivatives market could set a precedent for similar initiatives in other regions.

The company has demonstrated its willingness to adapt to regional regulatory requirements, providing a secure trading environment for its high-value clients. As such, Kraken has been challenging the U.S. Securities and Exchange Commission (SEC) on the classification of digital assets. The firm argued that the SEC’s interpretation of digital assets is flawed.

Nevertheless, the expansion in Australia aligns with Kraken’s recent efforts to broaden its services.

On October 24, a Bloomberg report revealed that Kraken is working on its own blockchain, called “Ink,” which it plans to launch in 2025. This project aims to provide decentralized finance (DeFi) options such as trading, lending, and borrowing on a blockchain network, eliminating the need for intermediaries.

Ink is positioned to make DeFi more accessible and efficient for users, representing Kraken’s ongoing shift toward a Web3-focused future.

The company’s commitment to regulated crypto derivatives trading and its upcoming blockchain project underscore Kraken’s focus on diversifying its service offerings.

By catering to both centralized and decentralized markets, Kraken aims to attract a wider range of clients, from individual investors to large-scale institutions.