Kraken Introduces USD-Settled Bitcoin and Ether Options to Expand Market

On July 19, 2026, Kraken introduced USD-settled options for bitcoin and ether on its Kraken Pro platform. The launch features European-style options available initially through a request-for-quote (RFQ) process. These contracts are specifically designed for international clients outside of Europe, North America, and Australia, with plans for a subsequent rollout in Europe.

Kraken's fresh approach aims to cater to retail traders, addressing existing barriers that have left this segment behind in the crypto options market. According to Alexia Theodorou, Kraken's director of derivatives, the cryptocurrency options realm is less developed than its traditional financial market counterpart, where options trading is significantly more prevalent. “Crypto options activity is still a fraction of what it is in traditional markets, but the gap is closing as professional and institutional capital continues to move into digital assets,” she stated.

This launch comes amid intensifying competition in the crypto derivatives sector, as both crypto exchanges and traditional financial institutions strive to meet growing institutional and retail demand for diverse trading instruments. Despite derivatives comprising the bulk of crypto trading volumes, options remain relatively underserved, dominated by a few key players like Deribit, CME Group, and Binance.

Kraken's strategy moves beyond merely capturing market share from existing venues. Theodorou believes the key lies in expanding the overall market by simplifying access to options trading. She noted, “The existing options market in crypto has been built for a narrow slice of the trader base. Our offering broadens access through a straightforward, dollar-settled contract in the same account clients already use for spot and futures.”

The recent product is designed to eliminate complexities for traders, featuring linear, USD-settled contracts that mitigate the need for crypto collateral or special settlement processes. Premiums, profit and loss, and settlement are all calculated in U.S. dollars, enhancing usability for a broader audience. Kraken has integrated options into its unified trading account, facilitating collateral management across various products, including spot and futures trading.

Looking forward, Kraken plans to include enhancements like a public order book to improve price discovery, increased geographic availability, and support for a wider range of assets. Europe is the next target for expansion, as the company has already secured the necessary regulatory approvals to offer crypto derivatives in the region.