Kraken announced that it now permits eligible users outside the United States to use tokenized stocks and ETFs as collateral for futures and margin trading on Kraken Pro.

Tokenized stocks are blockchain‑based representations of traditional securities, giving exposure to companies such as Apple, Tesla, Nvidia, and broad‑market ETFs. Kraken’s xStocks product initially provides access to more than 60 such assets with 1:1 backing and 24/5 trading.

At launch, ten tokenized assets are eligible, including SPYx, QQQx, AAPLx, GOOGLx, TSLAx, NVDAx, HOODx, MSTRx, GLDx and CRCLx. The feature applies only to users located outside the United States; futures collateral is available to users in the European Economic Area, while margin collateral is limited to users outside the United States and the EEA.

Kraken applies haircuts ranging from 10% for broad‑market ETFs to 30% for higher‑volatility names, with collateral caps of $1 million for ETFs and $250,000 for individual stocks. These limits may be adjusted as market conditions change. Kraken cautioned that using leverage remains risky and that declining collateral values can trigger margin calls or liquidation.

Related developments include a May partnership between Payward and Franklin Templeton to integrate tokenized money‑market products as collateral, and a June collaboration with Maple to launch an institutional lending model for crypto‑backed loans.

The update expands Kraken’s collateral options for leveraged crypto trading, but it also introduces additional risk that traders must monitor.