Kraken supports setting crypto asset collateral in Europe

JH Kim

Summary

Kraken has announced that it has started supporting derivatives trading using crypto asset collateral in Europe.
Collateral assets are settled in dollars at the end of trades, and the move was described as aimed at increasing institutional investor inflows and strengthening competitiveness.
The European Union is strengthening supervision of crypto asset collateral and derivatives trading through the implementation of the Markets in Crypto-Assets (MiCA) regulation.

Global crypto asset (cryptocurrency) exchange Kraken (Kraken) has started supporting derivatives trading that can use crypto assets as collateral in the European region.

On the 3rd (local time), crypto asset-focused media The Block reported that Kraken introduced a feature in the European derivatives market allowing customers to set crypto assets such as Bitcoin (BTC) as collateral and trade. Collateral assets are settled in dollars at the end of the trade.

The measure is interpreted as aimed at strengthening competitiveness in the European derivatives market and increasing inflows of institutional investors. Kraken said, "We have built a secure collateral management system aligned with the European financial regulatory environment," and added, "institutional and high-net-worth investors will be able to utilize crypto assets more efficiently."

Meanwhile, the European Union (EU) is gradually implementing the Markets in Crypto-Assets (MiCA) regulation this year and is strengthening supervision of crypto asset collateral and derivatives trading.