Crypto exchange Kraken said on Friday that ten xStock tokenized equities and ETFs can now serve as collateral on Kraken Pro futures and margin trades.
Futures collateral is available to eligible clients outside the United States, including the EEA. Margin collateral is available to eligible clients outside the United States, but not the EEA. According to the company’s blog post, eligible xStocks are automatically treated as collateral wherever futures and margin trading are available on an account.
Haircuts and limits
Kraken said haircuts range from 10% to 30% depending on volatility, with per-asset collateral limits reviewed periodically. Broad market ETFs SPYx and QQQx carry a 10% haircut and a $1,000,000 cap. Individual equities such as AAPLx and NVDAx sit at 20% with a $250,000 limit. Higher-volatility names, including HOODx, MSTRx and CRCLx, carry a 30% haircut.
Eligible holders can use xStocks they already hold to open or maintain leveraged positions without selling first.
Kraken previously offered xStocks as tokenized representations of real-world equities and ETFs that customers could buy and hold. The update turns that inventory into a funding tool inside Kraken Pro.
