Crypto News – Kraken’s Strategic Moves: Aiming for Institutional Liquidity in Australia
Crypto News – Kraken, a prominent centralized cryptocurrency exchange, has recently introduced a licensed brokerage service in Australia specifically aimed at wholesale clients. This new service is designed to cater to the needs of institutional and large-scale investors, reflecting Kraken’s commitment to regulatory compliance and market expansion.
New Crypto-Based Derivatives Trading
The newly launched service offers Australian clients the opportunity to engage in crypto-based derivatives trading. These financial products are tied to cryptocurrency prices but do not require direct ownership of digital assets. As of November 3, eligible clients can access and trade these derivatives via Kraken’s platform, utilizing the Kraken Pro app to check their eligibility and apply for the service.
Features of Kraken’s New Brokerage Service
Kraken’s offering includes a suite of derivatives that allows clients to explore multiple crypto options with multi-collateral support. The derivatives include features such as:
- Collateral Flexibility: Clients can use fiat, stablecoins, and other cryptocurrencies as collateral.
- Risk Management Tools: Designed to enhance asset security, these tools support advanced trading strategies.
While this new service presents exciting opportunities, Kraken has cautioned investors about the high risks associated with certain crypto derivatives, where losses could significantly exceed initial investments.
Commitment to Regulatory Compliance
The expansion into Australia’s wholesale derivatives market represents a strategic move for Kraken as it aligns with local regulatory requirements. Jonathan Miller, Kraken’s General Manager for Australia, emphasized the importance of this development, stating that Australian wholesale clients are increasingly looking for options “to execute advanced trading strategies using a licensed broker.” He noted that Australia has been a “cornerstone” of Kraken’s global operations and reaffirmed the exchange’s dedication to meeting regulatory standards while unlocking institutional demand for crypto assets.
Upcoming Launch of Ink Blockchain in 2025
In addition to the brokerage service, Kraken revealed plans to launch its own blockchain, named Ink, in early 2025. According to a Bloomberg report dated October 24, this new blockchain aims to facilitate trading, borrowing, and lending of tokens without intermediaries, thereby simplifying the decentralized finance (DeFi) process.
The introduction of Ink signifies Kraken’s shift towards decentralization principles and Web3, as it seeks to make DeFi more accessible and cost-effective for users.
Leave a comment