Kraken unlocks institutional crypto trading in Australia

Kraken launches a licensed broker offering for Australian institutional clients
Institutional investment is key to crypto market growth and mass adoption
The new offering addresses institutional needs for advanced trading, security and regulatory compliance

Special Report: Cryptocurrency platform Kraken has announced the launch of a new licensed broker offering for Australian wholesale clients, enabling these investors access to a suite of crypto-based derivatives products.

“Australia’s crypto market grows increasingly sophisticated, and the more robust it grows the better it is for everyone,” said Jonathon Miller, Kraken’s general manager for Australia ‘and rest of world’.

“Australian wholesale clients are looking for the ability to execute advanced trading strategies using a licensed broker backed by Kraken’s high security standards. Our new derivatives product meets our clients’ trading needs and helps them to advance in their crypto journey.”

Leveling up the crypto market

Institutional clients play an important role in the crypto ecosystem, bringing significant trading volume and liquidity to the market. Their participation is contingent on access to sophisticated trading tools, strong security standards and confidence in regulatory compliance wherever they operate.

Kraken’s focus on institutional clients is a strategic step towards driving the mass adoption of cryptocurrency. According to Miller, the story of 2024 has been institutional crypto adoption via exchange-traded funds (ETFs):

“Crypto ETFs bring the asset class into the mainstream like never before, helping the industry win new advocates,” he explained.

“Engaging some of the biggest names in traditional finance, crypto ETFs have helped to legitimise the industry in the eyes of other legacy institutions. The accessibility of crypto ETFs will onboard a new class of investors to crypto, strengthening grassroots advocacy for constructive crypto regulation.”

The Kraken Derivatives brokerage service can acquire exposure to over 200 tradable assets on behalf of wholesale clients. This exposure comes with flexible collateral options – including fiat, stablecoins and cryptocurrencies – held in a robust custodial solution. The service also includes Kraken’s award-winning round-the-clock client support, catering to the demands of institutional trading.

“We’re going to be releasing products that address the pain points institutions face,” Miller said.

“This isn’t where we will stop. Our goal is to continue innovating and providing solutions that make it easier for institutions to participate in the crypto market.”

Regulatory compliance and the future

The launch underscores the growth of both institutional and retail markets in the crypto ecosystem, and the importance of a predictable regulatory environment.

“As a sophisticated crypto ecosystem develops in Australia, we cannot afford to delay regulatory progress,” said Miller.

“Kraken, along with other industry players, continues to work with policymakers to develop a framework that is proportionate and targeted.

“Regulation will provide a necessary layer of certainty to stimulate local crypto industry growth, increase investment and allow businesses to remain innovative and competitive for Aussies in a global market,” he concluded.

This article was developed in collaboration with Kraken, a Stockhead advertiser at the time of publishing, and was written by Kraken managing director for Australia and rest of world Jonathon Miller.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.