Kraken Enables Tokenized Stock Collateral for Leveraged Trades

Crypto exchange Kraken has expanded its services by allowing customers to use select tokenized stocks and ETFs as collateral for futures and margin trading. This feature is available to eligible clients outside of the United States, with a list of 10 initial supported assets.

The collateral framework works by assigning a haircut percentage to each supported asset, which reduces its lending value depending on perceived risk. Broad-market ETFs receive a lower discount at 10%, while more volatile holdings are discounted more heavily.

Kraken emphasized that the collateral limits and haircuts are subject to periodic review and may change over time. The exchange is limited in its rollout, with only select tokenized stocks and ETFs available for collateral support.