Kraken Rolls Out Spot Margin Trading After Securing Bitnomial Infrastructure

U.S. retail traders can now access regulated crypto spot margin trading with up to 10x exposure.

Kraken is opening regulated spot margin trading to eligible U.S. customers. Retail traders in the U.S. can now access spot margin products that were previously limited to institutions and high-net-worth clients. Kraken said the service offers up to 10x margin for long and short crypto trades.

Kraken Expands U.S. Trading Services With Regulated Spot Margin Offering

Kraken has launched regulated spot margin trading for eligible retail users in the United States through its Kraken Pro platform. The rollout was introduced through a CFTC-registered entity, giving U.S. retail traders access to regulated spot margin trading on a domestic platform. 

Previously, traders seeking similar services often turned to offshore exchanges that operated with limited consumer protections and weaker regulatory oversight. Kraken’s latest offering aims to shift that activity toward a regulated U.S. environment.

Spot margin trading allows users to borrow against crypto holdings without selling them. Traders can open larger positions while keeping ownership of assets already held in their accounts. Borrowed funds are repaid after a position closes, while collateral remains tied to the trade during its duration.

According to Kraken, users receive upfront visibility into both costs and liquidation risks before entering positions. Order forms display estimated liquidation prices alongside projected borrowing costs, giving traders a clearer picture of potential exposure. Borrow fees are charged every four hours and remain fixed at the displayed rate once a position is opened.

Meanwhile, liquidation occurs automatically if the market reaches a trader’s liquidation threshold. To reduce downside risk during volatile price swings, Kraken advised users to place stop-loss orders above liquidation levels before leaving positions unattended.

Domestic Crypto Margin Access Expands Beyond $10 Million Investor Class

Company executives described the launch as a major shift for retail crypto trading access in the U.S. Previously, margin trading on regulated domestic venues was restricted to eligible contract participants. This category is generally reserved for firms and investors with portfolios exceeding $10 million.

Kraken positioned the service toward three main groups of traders. First, long-term holders can borrow against crypto assets without selling core positions. At the same time, active traders gain larger position flexibility and the ability to trade both upward and downward price moves.

Meanwhile, first-time margin traders receive upfront visibility into costs and liquidation risks before entering positions.

Payward, Kraken’s parent company, completed its acquisition of Bitnomial earlier this week. Bitnomial operates a regulated crypto derivatives exchange and holds merchant, contract market, and clearing licenses from the CFTC.

Kraken plans to expand regulated derivatives offerings following the acquisition. Future products may include perpetual futures contracts and crypto options for U.S. users, according to the company.

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