Summary
- Kraken said it is offering spot margin trading to US users with up to 10x leverage.
- The launch follows Kraken’s $550 million acquisition of Bitnomial.
- The market is focused on how Kraken’s expansion will affect competition in the US crypto derivatives market, with the regulatory environment and the scale of user adoption seen as key variables.
Forecast Trend Report by Period
Kraken, a US cryptocurrency exchange, has expanded its spot margin trading service, broadening access to leveraged crypto trading for US retail investors.
The company said on May 6 it would offer spot margin trading to US users, according to crypto news outlet The Block.
The service provides leverage of up to 10x.
The launch comes less than a month after Kraken agreed to acquire Bitnomial, a Chicago-based derivatives exchange and clearinghouse, for $550 million.
US retail investors had often turned to offshore exchanges for spot margin trading because of regulatory constraints.
Market participants are watching how Kraken's expansion will affect competition in the US crypto derivatives market. The regulatory backdrop and the scale of user adoption are expected to be key variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
