Kraken, a renowned U.S.-based cryptocurrency exchange, has announced that its wholesale clients in Australia can now purchase crypto derivatives through its licensed broker. This move expands Kraken’s crypto offerings to Australian customers, allowing eligible wholesale clients to participate in crypto price movements without owning the underlying assets.
In a blog post on November 3, Kraken revealed that the new service is immediately available, enabling Australian institutions to access a variety of crypto-based derivatives under a registered financial services license. The exchange emphasized that the broker service is designed for flexibility, catering to high-net-worth clients who are interested in executing advanced trading strategies with a licensed broker.
This development comes as Kraken undergoes organizational changes, with recent reports stating that the exchange has downsized its workforce by around 15%. This decision aligns Kraken with other industry players, such as Consensys and dYdX, who have also downsized due to market and regulatory challenges.
The job cuts at Kraken, which primarily impacted senior management, are part of a broader effort to enhance organizational discipline and streamline decision-making processes for better product innovation. Additionally, in early September, Kraken called for clearer crypto regulations in Australia following a court ruling that deemed part of its margin extension product non-compliant with local laws. The exchange expressed disappointment with the ruling, emphasizing the need for a more transparent regulatory environment for Australian crypto investors and businesses.
In other news, Kraken recently secured $42.5 million in funding from Optimism, highlighting the continued growth and investment in the crypto space.