TL;DR
- Kraken launches derivatives brokerage service in Australia for wholesale clients.
- The offering allows access to cryptocurrency derivatives without owning the underlying asset.
- The company continues its expansion in Australia with a focus on regulatory compliance.
Global cryptocurrency exchange platform Kraken has launched a licensed brokerage service in Australia aimed at wholesale clients.
This offering will allow these clients to trade cryptocurrency derivatives without the need to hold the underlying assets, which represents a significant advance in the range of financial services that the exchange provides in the Australian market.
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
The company seeks to meet the demand of institutional and wholesale clients seeking to implement advanced trading strategies to manage risk and gain exposure to price fluctuations in the cryptocurrency market.
Jonathon Miller, Kraken‘s General Manager for Australia and the rest of the world, highlighted that this offering represents the company’s commitment to regulatory compliance in Australia.
According to Miller, “Wholesale clients in Australia are looking for the ability to execute advanced trading strategies using a licensed broker backed by Kraken’s high security standards.”
The source of this information comes from Kraken‘s official communication, which highlights the company’s interest in establishing itself as a reliable option for large investors in the country.
Kraken‘s new brokerage service offers access to over 200 tradable assets, with the flexibility to support multiple collateral types including fiat, stablecoins, and cryptocurrencies.
All of this is under one of the most robust cryptocurrency custody systems on the market, ensuring the protection of its clients’ assets at all times.
Additionally, the service includes 24/7 customer support, highlighting Kraken’s focus on providing a comprehensive and secure experience for its users.
This launch is part of an expansion strategy in Australia that Kraken has been promoting throughout 2024.
Previously, in July, Kraken expanded its cryptocurrency custody service in the country, giving institutional clients the ability to securely store and manage their assets alongside the company’s other services.
These types of initiatives reinforce Kraken’s position as a trusted provider of crypto financial products, especially in an environment where regulatory compliance is increasingly crucial.
An evolving market by Kraken
With this new offering, the company continues to demonstrate its interest in serving the Australian institutional and wholesale market, a country that has been considered a key piece in the company’s global operations.
The introduction of this derivatives brokerage service is seen as a response to the growing interest of wholesale investors in cryptocurrencies, who are looking for products that allow them to manage their portfolios strategically without taking direct ownership of the assets.
Kraken has made a support system available to clients to confirm their eligibility on the Kraken Pro platform, where they can access new derivatives products.
This type of initiative strengthens the company’s ability to attract institutional demand, facilitating access to derivatives that, although they carry high risks, are useful for those who wish to have exposure in the sector without direct ownership of cryptoassets.
It is important to note that, as Kraken warns, trading cryptocurrency derivatives involves considerable risks, including the possibility of losing more than your initial investment.
This type of trading may only be suitable for investors with high risk tolerance and seeking indirect exposure to the cryptocurrency market.
Kraken, through Bit Trade Pty Ltd and Beaufort Fiduciaries Pty Ltd, continues to strengthen its presence in Australia, thus demonstrating its commitment to providing financial products that comply with regulatory requirements and enable the sustained growth of the crypto market in the region.
