Kraken introduces new brokerage services for institutional clients in Australia
Cryptocurrency exchange Kraken has announced that its wholesale clients in Australia can now purchase crypto derivatives through its licensed broker. This move further expands Kraken’s offerings to Australian customers, allowing eligible wholesale clients to gain exposure to crypto price movements without actually owning the underlying assets.
In a recent blog post on November 3rd, Kraken revealed that the new service is immediately available, providing Australian institutions access to a variety of crypto-based derivatives under a registered financial services license. The exchange emphasized that this new broker service is designed for flexibility, catering to high-net-worth clients who are seeking the ability to execute advanced trading strategies with a licensed broker.
This announcement comes following recent changes within Kraken’s organization. Earlier reports indicated that Kraken had let go of around 15% of its workforce, joining other crypto companies like Consensys and dYdX in downsizing due to market and regulatory pressures. The job cuts primarily impacted senior management positions, reflecting Kraken’s shift towards “organizational discipline” to streamline decision-making processes and drive product innovation.
Back in early September, Kraken had called for clearer crypto regulations in Australia after a Federal Court ruling deemed part of its margin extension product to be in violation of local laws. The exchange expressed disappointment with the decision, highlighting the confusing and uncertain regulatory environment that Australian crypto investors and businesses continue to operate in.
In other news, Kraken recently secured $42.5 million in funding from Optimism, while Glow Labs raised $30 million in a venture capital round focused on crypto investments.
