In the latest Kraken Pro update, European traders can now access crypto-collateralized futures contracts that fully comply with the MiFID II regulatory framework. This enables EU clients to trade with greater capital efficiency and flexibility, allowing them to use BTC, ETH, and stablecoins as margin for futures positions.
Additionally, this Kraken crypto collateral futures upgrade makes the exchange one of the first regulated platforms in Europe to support perpetual futures backed by token collateral. Let’s explain what this means for EU clients, go through the core benefits, and more.
A Milestone for Regulated Crypto Derivatives in Europe
Kraken’s introduction of crypto-collateralized futures contracts in the EU market reinforces the exchange’s reputation as a top, regulated crypto derivatives platform. In June 2025, Kraken announced that it had secured a Markets in Crypto-Assets Regulation (MiCA) license as part of its European expansion.
Earlier this year, the platform also secured its Markets in Financial Instruments Directive (MiFID) crypto futures regulation in Europe. By earning these EU licenses, Kraken demonstrates its commitment to safe, fully compliant innovation that’s unrivaled among other crypto futures trading platforms.
Globally, regulatory institutions from the U.S. and Asian markets continue to observe the EU’s approach to proper compliance in futures markets.
Visit KrakenWhat Crypto Collateral Means for Futures Traders
The Kraken Pro EU futures collateral upgrade resolves common issues faced by derivatives traders who can’t use cryptocurrencies to back futures contracts.
Now, traders can post BTC, ETH, or stablecoins instead of fiat, eliminating conversion friction and fiat fees from the futures trading process while enabling quicker capital deployment. For stability, crypto collateral trading positions are USD-margined
Let’s quickly break down two simple use cases to highlight new possibilities with the new Kraken crypto futures EU update:
- Hedging: An ETH holder who believes the market will drop can use their ETH as collateral for a short ETH/USDT perpetuals trade to manage downside risk.
- Directional trading: You can use stablecoins to go long with BTC/USD perpetuals, without having to convert your stablecoin holdings into fiat.
What Are the Key Benefits?
Here are the main benefits that both individual and institutional traders receive for using BTC, ETH collateralized futures, and other tokens as collateral for perpetuals trading:
- Use Crypto Holdings as Collateral: Post BTC, ETH, or certain stablecoins as margin.
- Efficient Capital Deployment: Avoid delays and fees associated with fiat currency conversions.
- Increased Flexibility: Trade faster and diversify collateral types.
- Cross-Asset Leverage: Utilize crypto assets for futures positions beyond cryptocurrencies.
- Maintain Crypto Exposure: Use your BTC and ETH as margin while still benefiting from price increases.
If you want to learn more about the exchange’s trading experience and core offerings, check out our Kraken review.
MiFID-Compliant and Market-Ready
When it comes to perpetual futures trading, Europe has a comprehensive regulatory environment. This is where Kraken’s regulatory framework becomes a major differentiator, starting with a compliance-first approach when it comes to MiCA and MiFID crypto derivatives.
Furthermore, Kraken Pro’s commitment to meeting EU financial standards extends to the custody and collateral supervision it offers for its European clients. Users’ assets are held in segregated accounts, and Kraken regularly publishes independent Proof of Reserves audits that all traders can access.
The crypto collateral futures upgrade for the EU increases flexibility for the Kraken Pro platform, which already offers up to 10x leverage on perpetual contracts. With multi-asset collateral, traders can now allocate capital more effectively to meet margin requirements. The update is fully integrated across both Kraken Pro’s web and mobile platforms.
Lastly, Kraken’s compliance with crypto futures regulation in Europe is part of the exchange’s regional expansion strategy, where Kraken follows local financial laws before entering new markets. By being the first MiFID II-regulated platform to offer crypto-collateralized perpetual futures, Kraken is setting a new standard for fully regulated crypto futures exchanges in the EU.
How to Start Trading With Crypto Collateral on Kraken Pro
Follow these easy steps to begin using BTC, ETH, or stablecoins as crypto collateral for Kraken Pro futures trades:
- Visit Kraken and complete verification under Kraken EU.
- Transfer BTC, ETH, or stablecoins to your spot wallet.
- Select your preferred collateral when opening a position.
- Trade perpetual futures with up to 10x leverage.
Every trade on Kraken Pro combines institutional-grade security with fully compliant innovation.
Empowering Traders to Make Crypto Capital Work Harder
Kraken Pro’s expansion of crypto collateral futures in the EU marks a milestone for the regulated exchange and reinforces the platform’s mission of empowering traders to build personal wealth. Operating under a transparent regulatory framework, Kraken strives to provide traders with greater control, efficiency, and access to crypto services for both experienced and new traders.
Regulated crypto collateral is the next step in the development of crypto-financial infrastructure in Europe and globally. With crypto collateral now live for EU clients, Kraken Pro is setting the benchmark for the next generation of regulated futures trading.
Visit Kraken
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed
