Kraken to Launch Crypto Perpetual Futures Trading in US
Summary
- Kraken will launch perpetual futures trading for US users.
- Kraken said its Bitnomial acquisition gave it a US derivatives business foundation after buying the CFTC-licensed firm.
- The market sees Kraken's perpetual futures launch as a sign of the US crypto derivatives market moving into the regulatory mainstream and competition among exchanges expanding.
Forecast Trend Report by Period
Kraken is set to launch cryptocurrency perpetual futures trading in the US. The move comes as the Commodity Futures Trading Commission moves toward allowing crypto derivatives to trade domestically, and as major exchanges try to bring demand for perpetual futures under US regulation after the market long centered on offshore venues.
The Block reported on June 15 that Kraken will introduce crypto perpetual futures for US users on its professional trading platform, Kraken Pro.
Perpetual futures are derivatives that give traders ongoing exposure to underlying assets such as Bitcoin and Ether without an expiration date. Unlike conventional futures contracts, they do not expire. Funding payments are used to keep futures prices from diverging too far from spot prices.
US investors have had limited direct access to perpetual futures on regulated platforms. As a result, some have turned to offshore exchanges while taking on regulatory uncertainty or counterparty risk. Offshore venues such as Binance and Bybit account for a large share of perpetual futures trading volume, though they generally restrict access for US users.
Kraken's latest launch follows its acquisition of Bitnomial. Last month, Kraken completed the purchase of Bitnomial, a CFTC-licensed exchange, clearinghouse and brokerage. That gave Kraken a regulated base for its US derivatives business.
Kraken has also been stepping up its expansion in derivatives. It previously acquired NinjaTrader, a company registered with the CFTC. On that foundation, Kraken launched its US derivatives service in the middle of last year. The platform has been offering Chicago Mercantile Exchange-listed crypto futures tied to Bitcoin, Ether and Solana.
The market views Kraken's perpetual futures launch as an example of the US crypto derivatives market moving further into the regulatory mainstream. If perpetual futures trading shifts from offshore exchanges to US-regulated platforms, competition among exchanges and participation by institutional investors could expand as well.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
