Kraken Launches Crypto Derivatives Trading in the UK
Date: 2025-05-02 Author: Oliver Abernathy Categories: BUSINESS
Kraken, one of the world's leading cryptocurrency exchanges, has launched crypto derivatives trading services for users in the UK. The solution was rolled out gradually, starting with a limited group of clients for testing, and is now available to all users who have completed a special registration process.
Alexia Theodorou, Head of Derivatives at Kraken, highlighted that derivatives account for a significant portion of trading volume in the crypto markets. Currently, crypto derivatives are growing at a faster rate than traditional spot trading, which was a key driver for the company to further expand its offerings.
The launch of derivatives trading in the UK is taking place through Kraken's Multilateral Trading Facility (MTF), which was acquired by the company in 2019. The platform is regulated under UK and international standards and provides clients with access through a Bermuda-based futures broker. MTF was the first crypto company to receive a license from the FCA in 2020.
Products available on the Kraken platform include multi-collateral perpetual contracts, which have become popular due to their high efficiency when dealing with institutional clients. These contracts allow traders to use a variety of collateral types and leverage, as well as employ complex trading strategies such as hedging or market-neutral approaches.
According to Theodore, crypto derivatives are in their infancy, especially when compared to more mature markets such as the stock market, where derivatives trading volumes are 10-15 times larger than spot trading volumes. However, despite the growth prospects, the industry faces a number of regulatory restrictions in different countries, which prevents access to major markets such as the US and South Korea.
Kraken has been working hard to expand its presence in global markets, recently acquiring a MiFID II regulated company in Cyprus and US-based NinjaTrader. These moves are part of the company’s broader strategy to expand its derivatives offerings into new markets.
Kraken is also launching US stock trading on its platforms as part of its efforts to diversify its offerings. Alexia Theodorou noted that the company continues to target key jurisdictions to offer regulated products to its clients.
Kraken generated $1.5 billion in revenue in 2024 and continues to strengthen its market position as it prepares for an IPO.
