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

Kraken Pro has expanded its collateral options, allowing holders of tokenized equities and ETFs—known as xStocks—to use them as collateral for futures and margin trading on the platform. The feature is now available to eligible clients outside the United States, with specific regional restrictions.

At launch, ten xStocks assets are eligible. Broad market ETFs SPYx (tracking the S&P 500) and QQQx (tracking the Nasdaq-100) carry the lowest haircut of 10% and a maximum collateral value of $1 million each. Most individual equities—including AAPLx, GOOGLx, TSLAx, and NVDAx—are subject to a 20% haircut and a $250,000 limit. Higher-volatility names such as HOODx (Robinhood Markets), MSTRx (Strategy Incorporated), and CRCLx (Circle Internet Group) have a 30% haircut and a $250,000 limit, while GLDx (gold shares) has a 20% haircut and a $100,000 limit. These terms are periodically reviewed and subject to change.

Regional availability differs by product. Futures collateral using xStocks is open to eligible clients both in the European Economic Area (EEA) and other non-US regions. Margin collateral, however, is available only to eligible non-US clients outside the EEA.

For traders already holding xStocks, the move improves capital efficiency. Instead of selling holdings to free up cash for leveraged positions, users can pledge their existing xStocks as collateral directly. Kraken notes that this approach allows users to maintain their equity exposure while accessing leverage, without an upfront liquidation.

Kraken warns that using xStocks as collateral does not eliminate the risks associated with leveraged trading. Haircuts reduce the effective value of each asset, and per-asset collateral limits cap the amount that can be applied. If the collateral value declines, positions may face margin calls or liquidation. The exchange advises users to understand these mechanics before activating the feature.