Kraken Expands to UK: Launches Crypto Derivatives Trading

Vignesh Karunanidhi
May 1, 2025
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Kraken Expands to UK: Launches Crypto Derivatives Trading

Highlights

  • Kraken launches crypto derivatives trading in the UK, its second-largest market.
  • New offering limited to "Professional Clients" as defined by UK regulators.
  • Services will be provided through Kraken's regulated Multilateral Trading Facility operated by Crypto Facilities.

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.

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.

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Kraken’s derviative trading 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.

“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. Additionally, 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. In addition, 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.

The announcement by Kraken comes after the recent comments by UK Finance Minister Rachel Reeves. Reeves shared plans to collaborate with the United States for a crypto regulatory plan.

Kraken is also expanding beyond cryptocurrency by adding US equities trading to both its mobile and web platforms. The multi-collateral perpetual contracts now available to UK professional clients are described by Theodorou as “a very capital-efficient way of trading for institutional clients.” Theodorou also believes crypto derivatives are still in early development stages compared to traditional markets.

The crypto exchange had also introduced Kraken Embed recently. According to their announcement tweet, this is a crypto-as-a-service for banks, fintechs and PSPs.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Vignesh Karunanidhi is a seasoned crypto journalist with nearly 7 years of experience in the cryptocurrency industry. He has contributed to numerous publications, including WatcherGuru, BeInCrypto, Milkroad, and authored over 10,000 articles
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.