Kraken Launches Europe’s Largest Regulated Crypto Derivatives Hub
The exchange’s MiFID II-compliant platform marks a major leap in Europe’s evolving crypto landscape.
Kraken has taken a decisive step toward reshaping Europe’s digital asset trading ecosystem with the launch of the region’s largest regulated crypto derivatives platform, underscoring its expanding global ambitions. The move, announced on May 20, is a response to growing institutional demand for regulated and robust crypto trading infrastructure across the European Economic Area (EEA).
The new platform, fully compliant with the European Union’s Markets in Financial Instruments Directive (MiFID II), positions Kraken at the forefront of the continent’s maturing crypto market. With Europe increasingly viewed as a hotspot for regulated digital finance, Kraken’s offering could set a new benchmark for crypto derivatives in the region—and beyond.
Kraken Delivers Institutional-Grade Trading to Europe
Operated through Payward Europe Digital Solutions (CY) Ltd, a Cyprus-based MiFID-regulated investment firm acquired by Kraken earlier this year, the platform supports a broad suite of crypto derivatives, including perpetual and fixed maturity contracts. This strategic acquisition laid the regulatory groundwork for Kraken’s European derivatives ambitions, enabling fully compliant access to crypto futures for both retail and institutional participants.
“Europe is one of the fastest-growing regions for digital asset trading and investment, with some of the most sophisticated and demanding clients and institutions,” said Shannon Kurtas, Head of Exchange at Kraken.
“The launch of Kraken’s regulated derivatives in Europe, the largest offering of its kind, is well-timed to meet this growing demand.”
With a focus on capital efficiency and seamless risk management, Kraken’s new platform features:
- Local fiat support for streamlined fund transfers
- Flexible collateral options to optimize capital usage
- Full regulatory compliance under MiFID II
These capabilities aim to attract a new wave of institutional investors seeking stability, transparency, and performance in their crypto trading environments.
Pioneering Regulated Perpetual Contracts in the EU
Kraken now becomes one of the first regulated brokers in Europe to offer crypto perpetual contracts, a derivative product popular among active traders for its flexibility and leverage. While perpetual futures are common on offshore platforms, they have largely been absent from fully compliant EU venues—until now.
This development builds on Kraken’s earlier foray into the derivatives space, including its 2019 acquisition of a regulated crypto derivatives venue, which helped establish its reputation as one of the most liquid derivatives markets globally.
According to Kurtas, the newly launched derivatives suite will complement Kraken’s existing trading services, creating a “full suite of products” that clients can access under one regulated umbrella. “Clients and partners increasingly seek comprehensive offerings within a regulated framework,” he added.
Kraken’s Global Strategy: Derivatives, Expansion, and IPO
The European launch is part of Kraken’s broader global strategy to diversify its offerings and cement its position as a multi-asset trading powerhouse. Earlier this month, the company acquired U.S.-based NinjaTrader, a futures trading platform regulated by the Commodity Futures Trading Commission (CFTC).
This acquisition provides Kraken with a direct entry into the U.S. traditional derivatives market, significantly expanding its capabilities beyond crypto and enabling further access to markets in the UK, continental Europe, and Australia.
Kraken’s push into derivatives aligns with a wider trend in the crypto industry, as competitors race to establish dominance in the regulated trading space:
- Coinbase recently announced its acquisition of Deribit, a leading crypto options exchange.
- Gemini secured regulatory approval to offer derivatives across the EU.
- Synthetix, a DeFi protocol, is working to re-acquire Derive, a decentralized crypto options platform.
This intensifying competition reflects the growing appetite for regulated crypto products, as institutional investors seek more legitimacy and security in digital asset markets.
Financial Growth and IPO Ambitions
Kraken’s derivatives expansion comes amid strong financial performance, even as the broader market experiences volatility. The exchange reported $472 million in revenue for Q1 2025, a 19% year-over-year increase, attributed in part to heightened market activity during the second term of President Donald Trump.
Although revenue was down 7% from Q4 2024, Kraken noted particularly strong derivatives performance, validating its focus on this sector.
Looking ahead, the company is considering an IPO in early 2026, with preparations already underway. Kraken is reportedly exploring a debt package of up to $1 billion to support this initiative, signaling its readiness to join the ranks of publicly traded crypto firms and bolster its capital reserves for future expansion.
Conclusion: A Milestone for Regulated Crypto Trading in Europe
With the launch of its MiFID II-compliant derivatives platform, Kraken is setting a new precedent in the European crypto market, delivering both innovation and regulatory assurance. As institutional demand for transparent, secure, and flexible trading solutions accelerates, Kraken’s early-mover advantage could prove critical in shaping the next phase of digital asset adoption across Europe.
By offering institutional-grade products under a trusted regulatory regime, Kraken not only strengthens its foothold in Europe but also signals a broader shift toward the mainstreaming of crypto derivatives on a global scale. With a potential IPO on the horizon and further geographic expansion in play, Kraken appears poised to redefine what a modern digital asset exchange can be.
