Kraken Opens Bitcoin and Ether Options to EEA Clients Under Cyprus Licence

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Kraken Opens Bitcoin and Ether Options to EEA Clients Under Cyprus Licence
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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Kraken has opened Bitcoin and Ether options trading to eligible clients in the European Economic Area through Kraken Pro. A Cyprus-licensed entity provides the options, while an Irish entity holds the cryptoassets. Trading starts through private quotes rather than a public order book.

Kraken has opened Bitcoin and Ether options trading to eligible clients in the European Economic Area through Kraken Pro, using the MiFID licence of the Cypriot investment firm it acquired in 2025. Clients can reach options alongside spot and futures from the same interface and use a shared pool of collateral.

The products still come from separate regulated entities within the Kraken group.

Contracts are cash-settled in dollars

The offering covers European-style options on XBT/USD and ETH/USD, with weekly, monthly, quarterly and semi-annual expiries. Premium, profit and loss, and final settlement are calculated in dollars rather than delivered in Bitcoin or Ether.

Kraken is initially offering the contracts through a request-for-quote system instead of a public order book. A client can assemble a trade of up to five components, request prices and accept one of the time-limited quotes received.

Futures-style margining and collateral

Kraken uses futures-style margining, so the option premium is not paid in full when a position opens. Instead, profit and loss are marked against the client's collateral. Portfolio margin is enabled by default, and more than 30 currencies and assets can serve as collateral.

However, losses can trigger additional margin requirements or liquidation. Kraken warns that losses from selling certain options may exceed the margin initially posted.

Two regulated providers behind one account

Ireland-based Payward Europe Solutions Limited holds the cryptoassets used within the account under the EU's MiCA framework. Payward Europe Digital Solutions (CY) Limited provides the options and is regulated by CySEC under licence 342/17.

Kraken first launched the options outside Europe in July and said EEA access would follow later in 2026. The company has indicated that later stages may add a public order book and more underlying assets, but it has given no timetable.

Source: Finance Magnates

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