Australian Market Welcomes Kraken's New Licensed Crypto Derivatives Platform

The new service is tailored for wholesale customers, aiming to meet the demands of institutional entities and traders operating on a large scale.

Starting from November 3, individuals meeting the eligibility criteria have been granted access to trade these crypto-based derivatives through Kraken's platform. Interested parties can determine their eligibility status or initiate the application process via the Kraken Pro mobile application.

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Crypto derivatives are financial instruments tied to the values of digital assets, enabling involvement without the need to directly own the underlying cryptocurrencies. Accessible through its broker holding an Australian financial services license, Kraken's latest product provides clients with entry to a diverse range of cryptocurrency options.

These products come equipped with several notable features, including the support of flexible collateral options encompassing fiat currencies, stablecoins, and crypto. Additionally, the platform incorporates risk management tools and sophisticated trading strategies.

Despite the attractive benefits this new service presents, Kraken warned of the risks associated with certain crypto derivatives, emphasizing that losses can, in some instances, significantly exceed the initial amounts invested.

Jonathan Miller, Kraken’s general manager for Australia, commented:

Over our 13 year history, we have always aspired to be one step ahead of market demand. Australian wholesale clients are looking for the ability to execute advanced trading strategies using a licensed broker backed by Kraken's high security standards.

Miller further mentioned that Australia has played an important role in Kraken's global operations, describing the country as a foundational element of its international presence. He reaffirmed the exchange's dedication to adhering to regulatory compliance while unlocking the "institutional demand for crypto assets" existing within the market.

With this expansion, Kraken is enhancing its foothold in Australia and facilitating greater participation from institutional players in crypto.

In other news, Monochrome Asset Management launched Australia's first spot Ethereum exchange-traded fund (ETF) in October.