Kraken, a major cryptocurrency exchange, has introduced a new app called Kraken Perps, allowing eligible retail traders to predict crypto prices around the clock. This move is part of Kraken’s broader strategy to expand its services beyond traditional spot trading as it prepares for a potential public listing in early 2026.
What are Perpetual Contracts (“Perps”)?
Perpetual contracts are a type of futures product without an expiration date. This allows traders to hold a long (predicting a price increase) or short (predicting a price decrease) position indefinitely, as long as they maintain the required margin. Perps were first introduced by BitMEX in 2016 and have become a foundational part of the crypto derivatives market due to their suitability for 24/7 trading and volatile prices.
A key feature of Kraken Perps is that traders do not need to own the underlying cryptocurrency to participate. At launch, positions can be collateralized with Kraken USD balances, with more options planned for the future.
Balancing Opportunity and Risk
Kraken aims to make this product accessible to “everyday investors” while also providing risk management safeguards. The app includes features like stop-loss orders and margin alerts to help protect traders from sudden losses.
However, the article emphasizes that perpetual contracts are highly leveraged products, which can amplify both gains and losses. In a volatile market, positions can be wiped out quickly, and losses could even exceed the initial deposit. Kraken acknowledges these risks, noting that “perps are not for every investor” and that traders must understand how they work before participating. The app is being rolled out in stages, depending on the regulatory environment of different jurisdictions.
Kraken’s Growing Ambitions
The launch of Kraken Perps coincides with strong growth in the perpetual contracts market, which saw a record $515 billion in trading volume in August 2025. This expansion of Kraken’s ecosystem—which also includes a recent tokenized stock product for the EU, the acquisition of a trading platform, and the incubation of an Ethereum Layer 2 network—signals its ambition to become a full-service trading hub for both retail and institutional clients.
September 2025, Cryptoniteuae
