TechFlow news, May 1 — According to The Block, cryptocurrency exchange Kraken has launched its crypto derivatives trading service in the UK, its second-largest market. The product is available only to clients classified as "professional clients" by the UK Financial Conduct Authority (FCA).
Kraken's Head of Derivatives, Alexia Theodorou, said the company had "quietly" rolled out the service in recent weeks, adding: "As a new product, we've taken a phased approach, ensuring we first cover specific clients. Now, the service is open to 100% of clients who need to go through a specific derivatives onboarding process."
Theodorou noted that derivatives account for approximately 70% to 75% of total cryptocurrency trading volume and while derivatives and spot volumes are "currently comparable" on Kraken's platform, "crypto derivatives are generally growing faster than spot." These derivatives will be offered via Kraken's Multilateral Trading Facility (MTF), operated by Crypto Facilities, which became the first crypto firm to receive an MTF license from the FCA in 2020. Kraken acquired Crypto Facilities in 2019 for over $100 million.
It was reported that Kraken recently acquired a MiFID II entity in Cyprus and US-based NinjaTrader, paving the way for its derivatives expansion in these regions. Kraken reportedly generated $1.5 billion in revenue in 2024 and is said to be planning an IPO.
