Kraken Launches Licensed Crypto Derivatives Brokerage in Australia for Wholesale Clients

Highlights:

• Kraken launches licensed crypto derivatives brokerage for wholesale clients in Australia, enhancing institutional access to crypto markets.
• The new service offers over 200 tradable assets with multi-collateral support, adhering to strict regulatory compliance.
• Kraken expansion in Australia follows regulatory challenges, highlighting its commitment to security and compliance in crypto derivatives. 

Kraken has launched a licensed crypto derivatives brokerage in Australia, targeting eligible wholesale clients. This move enhances institutional access to crypto derivatives in Australia. The new offering enables clients to utilize advanced trading strategies without holding underlying assets.

Hey Australia 🇦🇺 – big news!

We are now offering access to crypto-based derivatives for eligible wholesale clients via our Australian financial services licensed broker.

Read more here:https://t.co/beFhgGaGGm pic.twitter.com/wl1jbfMVjE

— Kraken Exchange (@krakenfx) November 3, 2024

Advanced Trading Opportunities for Wholesale Clients

Australian wholesale clients can access over 200 tradable assets via Kraken’s platform. In addition to stablecoins and cryptocurrencies, the service supports multi-collateral including fiat. This flexibility enables clients to manage risk effectively. Moreover, Kraken provides 24/7 customer support to assist clients in their crypto journey. 

General Manager for Australia Kraken Jonathon Miller stated, ” Our new product meets clients’ trading needs and advances their crypto journey.” He stated that Australian clients seek the ability to execute advanced strategies using a licensed broker that meets high-security standards.

Commitment to Regulatory Compliance

Kraken’s launch comes as Australia faces regulatory challenges. Previously, the company had legal issues with its margin trading products. The new brokerage service aligns with local regulations, focusing on crypto derivatives. Miller added that the offering demonstrates the company’s compliance and institutional commitment.

The service is available to eligible wholesale clients only. To qualify, individuals must have net assets exceeding AUD $2.5 million and a gross annual income above AUD $250,000 for the past two years. This ensures that the products are made for experienced investors.

Expanding Presence Amid Regulatory Landscape

Despite past setbacks, Kraken continues to expand its presence in Australia. The launch of the licensed brokerage highlights the company’s dedication to the market. Kraken aims to provide Australia with secure, compliant crypto derivatives by complying with regulatory requirements.

The company pointed out that the new service uses one of the most robust custodial solutions available. This focus on security addresses institutional concerns about asset protection. Furthermore, Kraken’s platform provides deep liquidity and competitive pricing, enhancing the trade experience. 

Introducing licensed crypto derivatives in Australia positions Kraken as a key player in the country’s crypto market. Eligible clients can explore the new offering through Kraken’s platform and confirm their eligibility via the Kraken Pro app.

Recently, Kraken introduced kBTC, its own wrapped Bitcoin token fully backed 1:1 by Bitcoin. This ERC-20 token expands Bitcoin’s utility on Ethereum and OP Mainnet. With kBTC, Bitcoin holders can interact with DeFi applications on other blockchains.

Introducing $kBTC – an ERC-20 token fully backed 1:1 by Bitcoin, held securely by Kraken and always verifiable onchain.

More possibilities.
More functionality.
More transparency.

Let’s take a closer look ⤵️ pic.twitter.com/VammHbyJKm

— Kraken Pro (@krakenpro) October 17, 2024

To maintain security and transparency Kraken provides on-chain proofs of kBTC reserves and audits the token smart contract. The launch comes amid increasing competition in wrapped Bitcoin products. Kraken aims to position kBTC as a clean asset for users seeking utility beyond Bitcoin’s store of value.

Meanwhile, Kraken has restructured its workforce by laying off 15% of its employees. Arjun Sethi became co-CEO as the exchange pursues global growth. The co-CEOs stressed eliminating layers and urged the team leads to focus on building, not management.