Kraken has taken a significant step in expanding its institutional offerings by launching derivatives trading in the UK—its second-largest market globally.
The new feature is limited to clients classified as “Professional” under UK regulatory standards and is being offered through the firm’s regulated Multilateral Trading Facility (MTF), operated by its subsidiary, Crypto Facilities.
While the rollout began quietly with a small group of clients, the service is now available to all eligible users who complete a specialized onboarding process. Kraken’s head of derivatives, Alexia Theodorou, said the decision to launch gradually was intentional, aimed at fine-tuning the experience before scaling access.
Derivatives trading now makes up the majority of crypto volume across the industry, with estimates ranging between 70% and 75%. Although Kraken currently sees similar levels of activity in both spot and derivatives markets, Theodorou emphasized that growth is accelerating faster on the derivatives side, especially as more institutional capital flows in.
This move comes as part of Kraken’s long-term strategy to cement its presence in regulated jurisdictions. The MTF platform, backed by Crypto Facilities—which Kraken acquired in 2019 for over $100 million—was the first to receive such a license from the UK’s Financial Conduct Authority back in 2020. The setup also leverages Kraken’s Bermuda-based futures brokerage for access.
One of Kraken’s standout offerings includes multi-collateral perpetual contracts—tools designed to offer capital-efficient trading for institutions by allowing various collateral types and enabling advanced strategies like hedging and market-neutral plays.
Despite the momentum, Theodorou noted that crypto derivatives are still in their infancy compared to traditional finance, where derivatives often surpass spot trading volumes by over tenfold. Regulatory hurdles remain a challenge, with Kraken still locked out of key markets like the U.S. and South Korea due to jurisdiction-specific licensing constraints.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/kraken-targets-institutional-growth-with-derivatives-rollout-in-the-uk/
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