- Kraken Pro EU users can now pledge BTC, ETH and stablecoins directly as collateral for 150+ perp markets.
- The feature removes the need to convert crypto to fiat first, cutting fees and speeding up strategy changes.
- Kraken says it is among the first regulated EU venues to offer crypto-collateralized perpetual futures under MiFID II.
Kraken Pro, the advanced crypto trading platform offered by the Kraken cryptocurrency exchange, has added a new feature. The newly added functionality allows clients in the EU to post crypto, including BTC, ETH, and certain stablecoins, as collateral when trading more than 150 perpetual futures markets.
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Why This Is a Major Step for Capital Efficiency
According to a blog post on Kraken’s website, the latest development makes the exchange one of the first regulated platforms in Europe to offer crypto-collateralized perpetual futures contracts. Kraken considers the new feature a tool that enables users to unlock greater flexibility, speed, and capital efficiency while complying with standard regulations.
It is worth noting that Kraken operates under the MiFID II, a revised European Union financial markets regulation that replaced the original MiFID in 2018. For context, the current regulation aims to boost investor protection, improve market transparency, and foster more efficient and resilient financial markets across the EU.
More Ways to Trade Perpetual Futures
Kraken noted that introducing crypto as collateral on its platform gives clients more ways to trade and develop their futures trading strategy. With the new feature, Kraken Pro users can use cryptocurrencies, including BTC, ETH, and stablecoins, as collateral, instead of converting crypto to fiat.
Some of the benefits of the new system, as highlighted by Kraken, are that clients on the Kraken Pro trading platform can use the crypto assets’ values to open leveraged futures positions. It would also enable them to unlock capital faster, while maintaining their underlying crypto exposures more effectively.
Other Key Benefits
Providing more clarity about the potential benefits of using its latest feature, Kraken noted that it would enable clients to avoid fiat conversion fees and the associated delays. The crypto exchange also stated that the new feature would allow hedging of exposure and diversification across assets within a unified account, while allowing users to optimize capital efficiency through cross-asset leverage capabilities.
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Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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