Kraken has expanded its derivatives trading services in the European Union, now allowing traders to use cryptocurrencies as collateral for perpetual futures. This strategic move, facilitated through its MiFID-regulated platform, aims to strengthen Kraken's position as a leading crypto-native derivatives provider in Europe. The expansion leverages Kraken's MiCA license from the Irish Central Bank, addressing the growing institutional demand for crypto-backed derivatives. Kraken's derivatives director, Alexia Theodorou, highlighted the company's collaboration with regulators such as CySEC and ESMA to tackle classification and risk concerns. The platform integrates global liquidity via its UK-regulated multilateral trading facility, enabling European traders to use crypto assets like Bitcoin and Ethereum without converting them to fiat, thus reducing transaction costs and counterparty risk. This development is expected to attract institutional clients, particularly those seeking compliant crypto derivatives platforms under EU regulations.