Kraken officially provides licensed cryptocurrency derivative brokerage services in Australia, targeting wholesale clients and institutional investors.
On November 3, the cryptocurrency exchange Kraken launched a service for licensed cryptocurrency derivative brokerage in Australia, allowing institutional investors and wholesale clients to trade derivative products based on the value of cryptocurrencies without directly owning the assets. Eligible clients can access this service through the Kraken Pro platform.
The expansion into the Australian market is an important step in Kraken's global strategy, where Kraken's Australia Managing Director, Jonathan Miller, calls it a foundation for the company's operations. Kraken's new derivative service is provided through a licensed financial services broker in Australia, supporting multi-asset collateralization, including fiat currency, stablecoins, and other cryptocurrencies.
Additionally, risk management tools and trading strategies are integrated to enhance security and protect client assets. Miller stated that this move is a response to the growing demand from institutional investors in Australia who are seeking advanced derivative trading options through a licensed broker.
With the launch of this service, Kraken also reaffirms its commitment to compliance with local regulations, particularly in the context of the cryptocurrency market facing increasing legal pressures. Kraken also issued a warning about the potential risks of cryptocurrency derivatives, emphasizing the possibility of losses exceeding the initial investment for investors.
This move comes just a few weeks after Bloomberg reported that Kraken plans to launch its own blockchain called "Ink" in early 2025. Ink is designed to allow users to trade, borrow, and lend tokens without intermediaries, aiming to simplify and reduce the costs of decentralized finance (DeFi) activities.
