Kraken, a popular cryptocurrency exchange, has recently unveiled a new feature called Kraken Perps, designed to bring advanced trading tools to retail investors. This move comes on the heels of the exchange’s expansion of its tokenized equities product, xStocks, which aims to bridge the gap between traditional finance and blockchain technology.
Kraken Perps, short for perpetual contracts, allows eligible clients in select regions to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Unlike traditional futures contracts, perpetual contracts do not have an expiration date, allowing traders to hold long or short positions indefinitely. This flexibility enables traders to adjust their exposure to the market based on their changing convictions.
The Kraken Perps feature is integrated into the exchange’s main app, separate from its more advanced “Pro” platform. It supports USD collateral and includes features like customizable stop-loss orders to help protect traders from significant losses. While Kraken aims to make derivative trading more intuitive and accessible, it also emphasizes that these instruments carry a high level of risk and may not be suitable for all investors.
In addition to introducing Kraken Perps, the exchange has been expanding its tokenized equities offering through xStocks, a product developed in collaboration with Swiss partner Backed. This product provides eligible clients in the EU with access to over 60 tokenized U.S. equities and ETFs, including popular stocks like Tesla, Amazon, and Nvidia.
Since its international launch earlier this year, xStocks has seen impressive trading volume across both centralized and decentralized venues, surpassing $3.5 billion. The program offers several advantages, including extended trading hours, blockchain settlement, and the ability for investors to self-custody tokenized shares. Originally built on the Solana blockchain, xStocks has expanded to other blockchains like BNB and TRON, with Ethereum integration currently in progress.
Overall, Kraken’s introduction of Kraken Perps and expansion of its tokenized equities product demonstrate the exchange’s commitment to providing innovative trading opportunities for retail investors while also bridging the gap between traditional finance and the world of blockchain technology.