Svmuu News: Kraken has begun allowing eligible users to use certain tokenized stocks and ETFs as collateral for futures and margin trading, enabling them to open leveraged positions without having to sell their holdings.
The initial rollout supports 10 tokenized stocks and ETFs, including Apple, Nvidia, Tesla, Strategy, the SPDR S&P 500 ETF, and the Invesco QQQ Trust. This feature is currently available only to eligible users outside the United States.
Kraken has also set collateral limits for different assets: the maximum collateral value for large-cap ETFs is $1 million, for most individual stocks it is $250,000, and for tokenized gold and “Circle” stocks it is $100,000.The platform stated that collateral limits and discount rates will be reviewed periodically and may be adjusted based on market conditions. (Cointelegraph)