xStocks are now eligible as collateral for futures and margin trading on Kraken Pro

Total Eligible xStocks

Number of xStocks assets now eligible as collateral for futures and margin trading.

Maximum Collateral SPYx

$1,000,000

Maximum collateral value for the SPYx asset.

Maximum Collateral for Individual Equities

$250,000

Maximum collateral value for major individual equities like AAPLx, GOOGLx, TSLAx, and NVDAx.

§ 01 Executive Snapshot

What: xStocks are now eligible as collateral for futures and margin trading on Kraken Pro.
Who: Kraken Pro, eligible clients, and holders of xStocks.
Why it matters: This change enhances capital efficiency for traders, allowing existing xStock holdings to support leveraged positions without liquidation.

10 xStocks assets, including SPYx, QQQx, AAPLx, GOOGLx, TSLAx, and NVDAx, are now recognized as collateral for futures and margin trading.
Futures collateral is available to eligible clients outside the United States, including in the EEA, while margin collateral is available outside the U.S. excluding the EEA.
Haircuts for collateral range from 10% to 30%, with per-asset collateral limits reviewed periodically and subject to change.

xStocks, representing tokenized real-world equities, have previously been limited to buy-and-hold assets on Kraken, but can now be leveraged for trading.
This move aligns with broader trends in financial markets towards utilizing tokenized assets for enhanced liquidity and trading flexibility.

Immediate market consequences include increased trading activity as users leverage existing xStocks for futures and margin trading.
Long-term implications may lead to greater adoption of tokenized assets as collateral, potentially shifting market dynamics in equity trading.

Potential risks include the impact of haircuts on effective collateral value and the possibility of margin calls if collateral value declines.
Regulatory concerns may arise regarding the use of tokenized assets in trading, particularly in various jurisdictions.

Future developments to watch include any changes in haircut percentages or collateral limits, as well as the introduction of additional eligible xStocks.
Monitoring the trading volume and user engagement with xStocks as collateral will signal the success of this new feature.

§ 07

What are xStocks?

xStocks are tokenized real-world equities that can now be used as collateral for futures and margin trading on Kraken Pro.

Who can use xStocks as collateral on Kraken Pro?

Eligible clients and holders of xStocks can use them as collateral for futures and margin trading.

Why is the eligibility of xStocks for collateral important?

This change enhances capital efficiency for traders, allowing them to leverage existing xStock holdings without liquidation.

What are the risks associated with using xStocks as collateral?

Potential risks include the impact of haircuts on collateral value and the possibility of margin calls if the collateral value declines.