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Kraken expands into Australia’s crypto derivatives market with a regulated broker service for wholesale investors.
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Kraken, a centralized cryptocurrency exchange, has introduced a licensed brokerage service in Australia, targeting wholesale clients and designed to meet the needs of institutional and large-scale investors.
The new service offers Australian clients crypto-based derivatives trading, a financial product tied to cryptocurrency prices without requiring direct ownership of digital assets.
Eligible clients have been able to trade crypto-based derivatives via Kraken’s platform since Nov. 3. Interested clients can apply or check their eligibility for the service through the Kraken Pro app.
The launch of Kraken’s new Australian-targeted broker service demonstrates the exchange’s move toward regulatory compliance, preparing it to handle potential institutional liquidity inflows.
Related: Kraken to launch Ink blockchain for DeFi in early 2025
New service offering details
Kraken’s new product, available through its Australian financial services-licensed broker, allows clients to access multiple crypto options with multi-collateral support.
The suite of derivatives includes features like collateral flexibility, supporting fiat, stablecoins and other cryptocurrencies, while offering risk management tools and trading strategies designed to enhance asset security.
Despite the new service’s potential advantages, Kraken has warned investors about the high risks associated with crypto derivatives, stating that losses can “substantially” exceed initial investments.
Related: Kraken restructures with new co-CEO, layoffs reported
Kraken commitment to compliance
The exchange’s expansion into the Australian wholesale derivatives market is the latest step in aligning with local regulatory requirements.
In the launch announcement, Jonathan Miller, Kraken’s general manager for Australia, said that Australian wholesale clients are seeking an option “to execute advanced trading strategies using a licensed broker.”
Miller added that the country has been a “cornerstone” of the exchange’s global operation and expressed Kraken’s commitment to regulatory compliance while unlocking “institutional demand for cryptoassets.”
Related: Gelato secures $11M funding, adds Kraken’s Ink to rollup platform
Kraken to launch Ink blockchain in 2025
On Oct. 24, Kraken’s plans to launch its own blockchain in early 2025, dubbed “Ink,” were revealed in a Bloomberg report.
The report stated that the new blockchain aims to allow users to trade, borrow and lend tokens without intermediaries while simplifying the decentralized finance (DeFi) process.
Ink indicates Kraken’s step away from its current position in crypto and toward Web3 and decentralization principles as it bids to make DeFi more accessible and cost-effective for users.
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This article first appeared at Cointelegraph.com News
