XRP News Today: Kraken Pro launches XRP margin trading with 3x-5x leverage as XRP drops 6% amid crypto market slump

Kraken Pro, the derivatives trading platform of Kraken, has introduced margin trading for XRP against Ethereum (ETH) and other fiat and crypto pairs, expanding its leveraged trading options. The available pairs include XRP/ETH, XRP/EUR, XRP/BTC, XRP/CAD, and others, allowing traders to open larger positions using borrowed funds. Margin trading enables users to amplify exposure to XRP by leveraging up to 5x for most pairs, though XRP/ETH is capped at 3x due to market volatility and liquidity considerations. For example, a 5 ETH collateral deposit could support a 15 ETH position, reflecting the platform’s risk management framework [1].

The launch coincides with a bearish phase for XRP, which has fallen 6% to $3.25 as of July 25, 2025, underperforming Bitcoin’s relative resilience. Over the past week, XRP declined 10.6%, while ETH rose 1.9%. This follows XRP’s 14% drop from its peak of 0.00096 ETH on July 22 and its broader 12% weekly decline against the U.S. dollar. XRP had previously gained momentum against ETH in early 2025, reaching a year-to-date high of 0.0114 ETH in April, but the asset has since lost ground as Ethereum recovered amid narratives like Joseph Lubin’s corporate adoption initiative, SharpLink [2].

The move reflects broader industry trends of expanding altcoin exposure in leveraged markets. Kraken’s margin pair addition follows Binance’s recent launch of USDS-margined perpetual contracts for other assets, underscoring competitive pressures among exchanges to diversify offerings [3]. Analysts note that including XRP in margin trading could signal institutional confidence in its long-term utility, particularly in cross-border payments. However, the asset’s current underperformance raises questions about its appeal to leveraged traders, especially as XRP’s 5.32% 24-hour drop against the U.S. dollar highlights ongoing market caution [5].

Regulatory scrutiny of margin and futures markets remains a critical backdrop. While Kraken’s announcement does not address compliance specifics, the platform’s expansion aligns with growing institutionalization of crypto assets. The CME Group’s recent launch of regulated XRP futures further illustrates this trend, aiming to bridge retail and institutional adoption gaps [4]. Nevertheless, margin trading inherently amplifies risks, and XRP’s volatility could lead to significant gains or losses for traders.

Kraken’s 2015 introduction of margin trading with BTC/EUR marks a long-term commitment to derivatives innovation. By adding XRP/ETH and other pairs, the exchange positions itself as a leader in altcoin leveraged access. However, the decision also underscores the double-edged nature of margin trading: while it may attract speculative activity, it exposes participants to heightened risk during volatile periods. The broader market will likely monitor whether XRP’s structural use cases—such as cross-border transactions—can drive sustained demand, independent of short-term price fluctuations.

[1] [Kraken: New assets and pairs available for margin trading](https://blog.kraken.com/product/margin/new-assets-and-pairs-july-25)

[2] [Crypto: Ether, XRP Traders Book Bigger Losses Than Bitcoin as...](https://cryptoadventure.com/ether-xrp-traders-book-bigger-losses-than-bitcoin-as-crypto-bulls-see-630m-in-liquidations/)

[3] [Binance: New Cryptocurrency Listing](https://www.binance.com/en/support/announcement/list/48)

[4] [CME Group: Cryptocurrencies](https://www.cmegroup.com/markets/cryptocurrencies.html)

[5] [Kraken: Convert XRP to USD](https://www.kraken.com/convert/xrp/usd)