Kraken allows encryption assets to be used as derivation collateral in the EU.

Odaily Planet Daily reported that the cryptocurrency exchange Kraken announced that European traders can now use cryptocurrency assets as collateral through its MiFID-regulated derivation platform. This move expands Kraken's business scope in the EU, as the platform previously only supported fiat collateral. Kraken has obtained a MiCA license issued by the Central Bank of Ireland and has been approved by the Cypriot MiFID entity and the UK's Financial Conduct Authority ( FCA ) for its multilateral trading facility ( MTF ), providing derivation trading and global liquidity support for EU users. Kraken's strategy allows European traders to use cryptocurrency assets as collateral within a regulated framework, while adjusting the collateral ratio based on asset volatility, and automatically converting the value of cryptocurrency assets into USD for margin and settlement calculations. Kraken stated that this new option primarily meets the needs of institutional clients and is expected to enhance order book liquidity.