Kraken unveils broker offering in Australia for institutions

Kraken, the U.S.-based cryptocurrency exchange, has announced an expansion of its offerings for Australian clients, particularly targeting eligible wholesale clients interested in crypto derivatives. This new service allows these institutions to gain exposure to cryptocurrency price movements without the need to hold the underlying assets directly.

In a blog post on November 3, Kraken detailed that this service is now available and operates under a registered financial services license in Australia. This initiative is designed specifically for high-net-worth clients, who are often seeking the flexibility to implement advanced trading strategies. By leveraging a licensed broker, these clients can now access a variety of crypto-based derivatives, enhancing their trading capabilities in a regulated environment.

Kraken’s move reflects a growing interest in crypto derivatives among institutional investors, providing them with more sophisticated tools to navigate the crypto market. The exchange aims to meet the demand from these clients, who are looking for innovative ways to manage their investment strategies while complying with local regulatory standards. This development underscores Kraken’s commitment to expanding its services in the Australian market and catering to the evolving needs of its institutional clientele.

“Our new premium product meets our clients’ trading needs and helps them to advance in their crypto journey.”

Jonathon Miller, Kraken GM for Australia and Rest of World

The launch of Kraken’s new crypto derivatives service for Australian wholesale clients comes on the heels of significant organizational changes within the company. Recently, Kraken laid off approximately 15% of its workforce, a move that aligns with similar downsizing efforts by other crypto firms like Consensys and dYdX, which have also been adjusting to the ongoing market and regulatory challenges.

These job cuts, which predominantly impacted senior management, are part of Kraken’s broader strategy to promote “organizational discipline.” The company aims to streamline its decision-making processes and enhance product innovation in a challenging landscape.

Additionally, Kraken has been vocal about the need for clearer regulatory frameworks in Australia. Following a recent Federal Court ruling that found part of its margin extension product in violation of local laws, the exchange expressed disappointment and highlighted the ongoing confusion surrounding regulatory compliance. Kraken emphasized that Australian crypto investors and businesses continue to navigate an uncertain regulatory environment, which complicates their operations and strategic planning.

As Kraken rolls out its new derivatives service, it appears to be positioning itself to adapt to the evolving regulatory landscape while catering to the needs of institutional clients seeking greater flexibility in their trading strategies.