Kraken is set to revolutionize derivatives trading in the European Union by allowing users to collateralize positions with cryptocurrencies. This move, reported by The Block, signifies a major step forward in integrating digital assets into traditional financial markets. Traders will now be able to leverage their existing crypto holdings to access derivatives products, potentially increasing trading volume and liquidity. Settlement for these crypto-backed derivatives will be conducted in US dollars, providing a stable and familiar currency for transactions. This initiative by Kraken underscores the growing acceptance of cryptocurrencies as legitimate assets and their potential to reshape the financial landscape. By offering crypto collateralization, Kraken is expanding access to derivatives trading and attracting a wider range of participants to the market. This development is poised to enhance efficiency and create new opportunities for both institutional and retail investors within the EU. ```