Originally published on: November 04, 2024
Kraken, a leading cryptocurrency exchange, has rolled out a licensed brokerage service in Australia to cater to wholesale clients and meet the demands of institutional and large-scale investors.
This new service offers Australian clients the opportunity to engage in crypto-based derivatives trading, a financial instrument linked to cryptocurrency prices without the need for direct ownership of digital assets.
Since Nov. 3, eligible clients have had access to trading crypto-based derivatives through Kraken’s platform. Those interested can apply or verify their eligibility for the service using the Kraken Pro app.
The introduction of Kraken’s new broker service in Australia highlights the exchange’s commitment to regulatory compliance, positioning it to handle potential institutional liquidity surges.
Kraken’s latest product, provided through its Australian financial services-licensed broker, empowers clients to explore various crypto options with multi-collateral support.
The suite of derivatives boasts features such as collateral flexibility, with support for fiat, stablecoins, and other cryptocurrencies. Additionally, it offers risk management tools and trading strategies aimed at bolstering asset security.
Despite the potential benefits of this new service, Kraken has cautioned investors about the associated high risks, particularly with some crypto derivatives where losses can surpass initial investments.
Kraken’s expansion into the Australian wholesale derivatives market marks another step towards alignment with local regulatory standards.
In a statement regarding the launch, Jonathan Miller, Kraken’s general manager for Australia, acknowledged that Australian wholesale clients are looking for ways to implement advanced trading strategies through a licensed broker.
Miller emphasized Australia’s significance as a key market for the exchange and reiterated Kraken’s commitment to regulatory compliance while meeting institutional demand for crypto assets.
Furthermore, reports have surfaced regarding Kraken’s plans to unveil its blockchain, “Ink,” in early 2025, aiming to revolutionize trading, borrowing, and lending of tokens without intermediaries. This initiative signifies Kraken’s pivot towards Web3 and decentralization principles to enhance accessibility and cost-effectiveness in the DeFi space.
As Kraken continues to make strides in the cryptocurrency landscape, its focus on regulatory compliance and innovative solutions underscores its dedication to providing top-notch services to clients worldwide.
