Kraken Adds Tokenized Stocks as Collateral for Leveraged Trading

Eligible Kraken users can now pledge select tokenized stocks and ETFs as collateral for futures and margin trading without selling those holdings.

Kraken Adds Tokenized Stocks as Collateral for Leveraged Trading

What happened?

Eligible Kraken users can now pledge select tokenized stocks and ETFs as collateral for futures and margin trading without selling those holdings.

Why it matters

The change gives qualifying traders another way to access leveraged markets while retaining their tokenized stock and ETF holdings. Previously committed assets do not need to be sold before they can serve as collateral.

Kraken has introduced support for select tokenized stocks and exchange-traded funds as collateral for futures and margin trading. The feature is available to eligible users.

The change gives qualifying traders another way to access leveraged markets while retaining their tokenized stock and ETF holdings. Previously committed assets do not need to be sold before they can serve as collateral.

The offering connects tokenized traditional-market assets more closely with crypto trading infrastructure. It also expands the potential utility of supported tokenized securities beyond holding or trading them directly.

Access remains limited by user eligibility and the assets Kraken supports. Traders should also recognize that futures and margin positions involve leverage, which can amplify losses as well as gains.

Source: Cointelegraph

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