Kraken to Offer Bitcoin and Ethereum Options in Europe From October 26
Key Facts
Kraken announced that eligible clients in the European Economic Area can trade Bitcoin and Ethereum options from October 26, 2026, through Kraken Pro on the web and mobile, using their existing derivatives account. The launch lets eligible clients trade these contracts through their current account rather than opening a separate derivatives account. The service is provided by Payward Europe Digital Solutions (CY) Limited, a licensed and regulated investment firm under the Cyprus Securities and Exchange Commission, or CySEC. The company’s license number is 342/17. Kraken said trading is available in EEA countries where it offers derivatives services, after clients pass a suitability assessment.
The contracts are European-style, cash-settled in dollars and linear, according to Kraken’s specifications. Expiries include weekly, monthly, quarterly and semiannual terms, offering different maturities within the product. This does not mean the digital asset is delivered at settlement; the company describes the contracts as cash-settled in dollars. In July 2026, Kraken had announced that Bitcoin and Ethereum options would be available to eligible clients through Kraken Pro, with European clients expected to gain access later in the year, subject to regulatory confirmation. The October announcement set the start of European availability for October 26.
Trades are executed through a request-for-quote mechanism, or RFQ, rather than a public order book at the stage described in the announcement. Traders can build a position with up to five legs, then accept or reject the quote. But accepting the price makes the quote binding, according to Kraken, so the process is not limited to viewing an indicative price. In July, the company said future phases could include a public order book to deepen price discovery as activity grows, alongside broader geographic coverage and asset support. Its announcement did not set a date for those steps, describing them as expected later phases.
Portfolio margin is enabled by default, and the options use the same collateral as the platform’s futures. Kraken says more than 30 currencies are accepted as collateral, in an arrangement that links collateral requirements across its derivatives products. Trading eligibility is subject to a suitability assessment, which the company requires clients to complete before executing any options trade. Availability is limited to EEA countries where Kraken offers derivatives services. The company says digital assets are held by a separate entity, Payward Europe Solutions Limited, as a custodian licensed under the MiCA framework, while the Cyprus company provides the financial instruments as a firm licensed under MiFID.
The product carries risks that vary depending on a trader’s position in the contract. Kraken warns that an option buyer may lose the entire value of the position. An option seller, by contrast, may lose more than the margin deposited, and losses may be unlimited, according to the company’s warning. These risks are particularly relevant for a product using portfolio margin and collateral shared with futures, while accepting a quote remains binding. Kraken therefore makes access to trading conditional on passing a suitability assessment before trades can be executed.
The European regulatory path for options dates back to Kraken’s announcement on February 3, 2025, that it had obtained an EU MiFID license through the acquisition of a Cypriot investment firm. At the time, it said it would work to meet the conditions for starting operations in local markets, while the CySEC register lists the company’s license date as November 13, 2017, and its number as 342/17. In July 2026, Kraken described crypto options as a small share of crypto derivatives activity, compared with the larger role options play in traditional markets. It also said the launch of regulated Bitcoin ETF options in late 2024 showed latent professional demand for options exposure in a familiar, dollar-priced format. In its license announcement, Kraken said its focus on the European market remained a priority, while it also cited its 2019 acquisition of UK-regulated Crypto Facilities, which later became the first UK-licensed cryptocurrency futures platform.