Kraken Launches Crypto Derivatives Trading in the UK

Crypto exchange Kraken has launched derivatives trading in the United Kingdom, expanding access to a product that now accounts for a growing share of the platform’s volume. The service is available exclusively to clients who qualify as “Professional Clients” under the UK’s Financial Conduct Authority (FCA) rules.

The rollout was initially limited to a select group of users but has now been opened to all eligible clients who complete the required onboarding process, Kraken’s Head of Derivatives Alexia Theodorou said.

“Opening up our flagship derivatives product to eligible UK clients is a big thing for us,” Theodorou told The Block, noting that derivatives already represent 70–75% of global crypto trading volume. “We are doubling down on derivatives, given the trends we see with institutional clients entering the space.”

Kraken will offer the product via its FCA-regulated Multilateral Trading Facility (MTF), operated by Crypto Facilities, a subsidiary it acquired in 2019 for over $100 million. Trading will be facilitated through Kraken’s Bermuda-based futures broker.

Kraken was the first exchange to introduce multi-collateral perpetual contracts, which Theodorou described as highly capital-efficient for institutional clients. These products allow users to trade with leverage and multiple collateral types while supporting complex strategies like hedging and market-neutral positions.

Despite global demand, regional licensing hurdles continue to limit Kraken’s derivatives expansion in key markets such as the U.S., South Korea, and parts of Europe. Theodorou explained that while spot crypto trading is only now becoming regulated through frameworks like MiCA, derivatives have long required country-specific licenses.

To support its broader derivatives ambitions, Kraken recently acquired a MiFID II-regulated entity in Cyprus and bought U.S. futures broker NinjaTrader.

The move makes Kraken, currently the world’s 13th largest centralized exchange by volume, one of the few crypto-native platforms bridging the gap between digital and traditional markets.

The company announced earlier this month that U.S. clients in ten jurisdictions — including New Jersey, Connecticut, and the District of Columbia — can now trade over 11,000 stocks and ETFs commission-free through their Kraken accounts. The rollout is part of what Kraken describes as a “phased national expansion,” with more states to follow in the coming months.

Kraken reported $1.5 billion in revenue for 2024 and is reportedly exploring a public listing.