Cryptocurrency exchange Kraken has expanded its services in the United Kingdom with the launch of derivatives trading. The company is targeting professional investors in what constitutes the company’s second-largest market. The new offering has been gradually introduced in recent weeks and is now available to all qualifying clients who complete a specific onboarding process.
Kraken’s new offering is only for professional clients
Access to these derivative products is restricted to “professional clients” as defined by the U.K. Financial Conduct Authority (FCA). Kraken has identified derivatives as a key growth area. These products account for approximately 70% to 75% of total cryptocurrency trading volume across the market.
According to Alexia Theodorou, Kraken’s head of derivatives, while spot and derivatives volumes are currently balanced on the platform, “crypto derivatives are growing at a faster pace than spot” in the broader market.
“That’s why we are doubling down on derivatives, given the trends and ratios that we see as more and more institutional clients are entering the space,” Theodorou explained. The top cryptocurrency exchange considers it a big investment from their end in the UK.
The derivatives services are being offered through the Kraken Multilateral Trading Facility (MTF). It is a regulated platform operated by Crypto Facilities, which became the first crypto firm to secure an MTF license from the FCA in 2020. Kraken acquired Crypto Facilities in 2019 in a deal valued at over $100 million. Clients will access these services through Kraken’s futures broker based in Bermuda.
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