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Kraken’s USD-settled options
Kraken launched USD-settled Bitcoin and Ethereum options on Kraken Pro, with the contracts described as European-style, cash-settled, and linear while settling entirely in US dollars.
“The new European-style options on XBT/USD and ETH/USD will launch on July 16, settling entirely in US dollars.”
The product is initially accessible through a request-for-quote system on Kraken Pro, with launch availability limited to clients outside Europe, North America, and Australia.
The contracts cover multiple expiration cycles, including weekly, monthly, quarterly, and semi-annual options, and they are designed so traders do not need to hold any crypto to trade.
Alexia Theodorou, who works on the product at Kraken, said, "The existing options market in crypto has been built for a narrow slice of the trader base."
Theodorou added that Kraken’s offering is intended to broaden access with a "straightforward, dollar-settled contract in the same account clients already use for spot and futures," according to CoinDesk.
Who can trade, and how
Kraken’s options rollout begins with eligible professional and institutional clients via RFQ, and the exchange said a European rollout is planned for the second half of 2026, pending regulatory approvals.
The contracts are described as using a unified wallet that supports collateral in more than 30 currencies, with portfolio margins enabled by default to allow offsetting positions across spot, futures, and options.
Crowdfund Insider said minimum order sizes start at 0.01 contracts for BTC/USD and 0.1 for ETH/USD, with tick sizes of $1 and $0.10 respectively.
Settlement relies on a 30-minute observation window prior to 8 UTC, and fees follow Kraken’s standard derivatives schedule based on notional value but capped at 12.5% of the premium, according to Crowdfund Insider.
CoinDesk framed the design choice as removing barriers by making premiums, profit and loss, and settlement denominated in U.S. dollars, while also integrating options into the same unified account used for spot and futures.
Expansion plans and market context
Kraken’s launch comes as competition in crypto derivatives intensifies, with Deribit, CME Group, and Binance cited as established venues where options remain a relatively small corner of the market.
“Kraken has signaled plans to expand to European clients later in 2026, with a public order book also expected to follow.”
CoinDesk said Kraken plans to expand the offering with an order book, broader geographic availability, and additional assets, with Europe identified as the next major expansion target.
Crypto Briefing reported that Kraken signaled plans to expand to European clients later in 2026, with a public order book also expected to follow.
In explaining the product’s rationale, Crypto Briefing said the exchange is betting that cash-settled, dollar-denominated options will unlock institutional demand that existing crypto derivatives have not reached.
Pluang’s market commentary also pointed to Shiba Inu (SHIB) experiencing a significant 65% drop in daily token outflows from exchanges and about 96 billion SHIB tokens moved back to exchanges, alongside a separate discussion of Ethereum’s EIP-4844 upgrade and Solana’s support zone between $72 and $75.