Kraken woos Australian wholesale clients with new crypto derivatives product

American cryptocurrency exchange Kraken has announced the launch of a new service it hopes will help entrench its Australian presence. The new derivatives-based product, which debuted on November 3rd, 2024, targets wholesale crypto investors. 

In a statement, the firm expressed excitement at the product’s launch. It said its Australia-based institutional traders could now access a suite of crypto derivatives through its local licensed broker. Thus, they would have the flexibility and depth to manage crypto trading risks without them needing to hold the underlying assets. 

Kraken’s crypto derivatives service will support over 200 assets

Kraken GM for Australia and Rest of World, Jonathan Miller, said that the firm had always sought to stay ahead of the market’s demand. He added that Kraken understood that Australian wholesale clients were seeking secure means to execute advanced crypto trading strategies.

To the GM, this new product meets those needs and helps them boost their investment journeys. He emphasized:

“With over 200 tradable assets, we are offering multi-collateral support (including fiat, stablecoin, and crypto) to be held in one of the most robust crypto custodial solutions available.”

~Jonathan Miller

Kraken is committed to regulatory compliance

Miller also reiterated Australia’s centrality to Kraken’s global operation and provided its licensed broker offering as proof of its commitment to regulation. Moreover, the new crypto derivatives service was one way the exchange was using to unlock institutional demand for digital assets. 

Kraken’s product launch comes hot on the heels of the exchange’s local affiliate, Bit Trade Pty Ltd, losing a court case against Australia’s financial watchdog, the Australian Securities and Investments Commission (ASIC). An Australian court found Bit Trade’s margin service had fallen short of ASIC’s standards for such products. 

While ruling in favor of the regulator, the court determined that the firm had not provided a target market determination, which is critical under the country’s Corporations Act. Though it expressed disappointment with the judgment, Kraken affirmed its commitment to playing by the set rules. With that suit behind it, its next battlefront will be separating itself from competitors with similar services.