Kraken lets traders use tokenized stocks as collateral for leveraged trades
Eligible users can now use select tokenized stocks and ETFs as collateral for futures and margin trading without selling their holdings.
Crypto exchange Kraken has begun accepting select tokenized stocks and exchange-traded funds (ETFs) as collateral for futures and margin trading, allowing eligible users to open leveraged positions without selling their holdings.
The feature initially supports 10 tokenized stocks and ETFs, including Apple, Nvidia, Tesla, Strategy, the SPDR S&P 500 ETF and Invesco QQQ Trust. Eligible users can post those holdings as collateral without selling them first.
Each eligible asset is assigned a collateral haircut that reduces its lending value based on risk. Broad-market ETFs receive the lowest haircut at 10%, while more volatile stocks such as Strategy and Robinhood are discounted by 30%.