2nd May 2025 – (London) Kraken, a leading global cryptocurrency exchange, has officially introduced its crypto derivatives trading platform to professional clients in the United Kingdom. Alexia Theodorou, Kraken’s Head of Derivatives, confirmed the launch, stating that the offering has been rolled out gradually to ensure it meets the needs of specific clients. The platform is now accessible to all clients who complete the necessary onboarding process for derivatives trading.
Ms. Theodorou highlighted the significance of derivatives, noting that they account for approximately 70% to 75% of total crypto trading volume. While Kraken currently observes similar volumes in its derivatives and spot markets, the exchange anticipates that crypto derivatives will outpace spot trading in terms of growth.
The U.K. derivatives trading is facilitated through the Kraken Multilateral Trading Facility (MTF), a regulated platform operated by Crypto Facilities, which Kraken acquired in 2019 for over $100 million. Crypto Facilities secured the first MTF license from the Financial Conduct Authority (FCA) for a crypto firm in 2020. Clients will access the product via Kraken’s Bermuda-based futures broker.
Kraken’s derivatives suite includes advanced products such as multi-collateral perpetual contracts, which the company pioneered in the crypto space. These contracts provide institutional clients with a capital-efficient trading tool, allowing them to use various forms of collateral and apply leverage. They also enable traders to experiment with sophisticated spot trading strategies, such as hedging and market-neutral approaches.
Ms. Theodorou noted that crypto derivatives are still in their early stages of development. In contrast, equity markets typically see derivatives trading volumes that are 10 to 15 times higher than spot markets. The slower adoption of crypto derivatives is attributed to fragmented regulatory frameworks worldwide, which have limited Kraken’s access to major markets like the U.S., South Korea, and parts of Europe.
While the spot crypto market is now beginning to see regulatory clarity through frameworks like MiCA, derivatives have long been subject to strict regulatory oversight, requiring specific licenses tailored to each jurisdiction.
Kraken has been expanding its global derivatives presence, recently acquiring a MiFID II-regulated entity in Cyprus and U.S.-based NinjaTrader. These moves are part of the exchange’s broader strategy to scale its derivatives offering across new markets. The company has also diversified its services by launching U.S. equities trading on both its mobile and web platforms.
Kraken, which is reportedly preparing for a public listing, generated $1.5 billion in revenue in 2024. The platform recently ventured into the stock trading scene, announcing that American users would soon be able to trade over 11,000 stocks and ETFs without paying commissions.
The Securities and Exchange Commission officially dropped its lawsuit against Kraken last month, following similar dismissals in cases against Robinhood and Coinbase. At the time, Kraken called it the “wasteful, politically motivated campaign” against the crypto industry.
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© 2021 DimSum Daily. ALL RIGHTS RESERVED.
