Kraken has started allowing users to post selected tokenized stocks and ETFs as collateral for futures and margin trading, removing the need to sell those holdings before opening leveraged positions. The first batch includes 10 instruments, such as Apple, Nvidia, Tesla, Strategy, SPDR S&P 500 ETF, and Invesco QQQ Trust.
First rollout covers 10 tokenized equity and ETF products
The assets are part of Kraken’s xStocks lineup, which the exchange describes as 1:1 asset-backed tokenized stocks available for 24/7 trading. Before this collateral update, Kraken had already launched xStocks perpetuals, giving eligible non-U.S. clients in more than 110 countries access to round-the-clock trading in major U.S. equities, the S&P 500, the Nasdaq 100, and gold, with leverage of up to 20x.
With the latest change, tokenized stocks on Kraken are no longer limited to being tradable products on their own. They can now also function as supporting collateral inside the platform’s leveraged trading system.
Haircuts and caps vary by asset type
Kraken is not valuing all collateral at face value. Instead, it applies a haircut model that adjusts usable collateral according to the risk profile of each asset. Broad-market ETFs carry the lowest haircut at 10%. More volatile single-name stocks, including Strategy and Robinhood, are assigned a steeper 30% haircut.
That means a user posting $100 worth of tokenized Strategy shares would only receive $70 in usable collateral value. The exchange has also set collateral limits by category: broad-market ETFs can be pledged up to $1 million, most single stocks up to $250,000, while tokenized gold and Circle stock are capped at $100,000.
Kraken said both haircut levels and collateral caps may be reviewed and adjusted based on market conditions, so the amount users can borrow against these assets may change over time.
Available only to eligible clients outside the United States
The service is currently limited to eligible clients outside the U.S. Under Kraken’s current framework, tokenized stocks can be used as collateral for futures trading in the European Economic Area, while margin collateral eligibility applies to other qualified jurisdictions outside the EEA. U.S. customers are not included in this rollout.
One week earlier, Kraken had announced a partnership with institutional credit platform Maple to introduce an on-chain inventory financing structure for institutional borrowers using crypto assets. By adding tokenized stocks and ETFs to its collateral list, the exchange is extending its credit and leverage tools beyond native crypto assets into tokenized versions of traditional securities.