Kraken Puts Cyprus Licence to Use: Launches Crypto Derivatives in Europe

Kraken announced yesterday (Tuesday) the launch of its crypto derivatives products for European customers. The services are being offered under a Cyprus licence acquired by the American crypto exchange earlier this year.

Kraken Begins Operating from Cyprus

The exchange can passport its Markets in Financial Instruments Directive (MiFID II) licence from Cyprus to offer crypto derivatives across other countries in the European Economic Area (EEA).

FinanceMagnates.com previously reported that Kraken obtained the Cyprus licence by purchasing a local entity formerly linked to contracts for differences (CFDs) broker Pacific Union Group, now operating as PU Prime outside Cyprus.

The latest announcement confirmed that Kraken will offer both perpetual and fixed maturity contracts to European clients.

“Europe is one of the fastest-growing regions for digital asset trading and investment, with some of the most sophisticated and demanding clients and institutions,” said Shannon Kurtas, Head of Exchange at Kraken. “Clients and partners increasingly seek comprehensive offerings within a regulated framework.”

According to Kurtas, crypto derivatives products will improve “capital efficiency, access to liquidity, reliability, and enable sophisticated strategies and position management.”

Road to the IPO

Kraken was founded in 2011 by Jesse Powell and launched in 2013. Headquartered in San Francisco, it is one of the longest-standing cryptocurrency exchanges still in operation. The exchange plans to go public by the end of 2025 or early 2026. According to reports, it aims to raise up to $1 billion in debt before its public listing.

Recently, eToro, a retail broker with a strong crypto offering, went public through an initial public offering (IPO). The Israeli company’s shares were listed at a premium to the IPO price on Nasdaq.

Robinhood, another retail broker listed on Nasdaq, also generates a large share of its revenue from crypto. However, it is now looking to diversify away from the asset class due to the fluctuating nature of trading volumes.

If listed, Kraken would become the second crypto-only exchange to go public after Coinbase, which recently joined the S&P 500 index. Meanwhile, Kraken is also expanding into traditional asset classes, having acquired retail futures trading platform NinjaTrader in a $1.5 billion deal.