Kraken, the cryptocurrency exchange, is rolling out a structured investment product on its Kraken Pro platform that combines a fixed yield with a directional view on bitcoin or ether.
Dual Investments is time-bound and fully collateralised, meaning customer funds are locked until maturity and cannot be withdrawn early.
At settlement, the product pays out automatically in either US dollars or cryptocurrency depending on whether the market price finishes above or below a target level chosen by the user at the outset.
Customers select an asset to deposit (BTC, ETH or USD), a target price, and a maturity date, with settlements occurring weekly or biweekly on Fridays.
Kraken frames the product around two customer strategies: "Sell High," for BTC or ETH holders who want to exit at a higher price while earning a yield if the target is not reached, and "Buy Low," for USD holders seeking a structured route to accumulate crypto at a lower price.
The product is offered by Payward Digital Solutions, a Kraken entity authorised to conduct digital asset business by the Bermuda Monetary Authority.
Kraken cautions that Dual Investments carry derivatives risk, geographic and eligibility restrictions, and potential tax implications.
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The product is not covered by investor compensation or deposit protection schemes and is not subject to the Investment Business Act 2003.
Dual Investments is available now on Kraken Pro, though the announcement does not specify which jurisdictions are eligible or detail the range of yields on offer.
The recap
- Kraken launches Dual Investments on Kraken Pro platform.
- Dual Investments settle weekly or biweekly, on Fridays.
- Available to Rest-of-World markets, with more geos planned.