Despite having recently been put in difficulty by the United States Securities and Exchange Commission (SEC), the Kraken cryptocurrency exchange is holding its own and is even preparing to launch its own crypto-bank. Called “Kraken Bank”, this subsidiary provides a multitude of financial services for individuals but also for professionals and businesses.
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Kraken soon a crypto-bank?
This is surprising news: despite a more than complicated regulatory environment for crypto companies operating in the United States, cryptocurrency exchange Kraken plans to launch its own crypto bank soon.
The latter, presented as a ” totally independent subsidiary of Kraken », had already received a « Special Purpose Depository Institutions (SDPI) » license in 2020 in order to start its activities, but its launch was still pending without the company communicating more about it.
The status of SPDI is issued by the State of Wyoming and concerns banking institutions ” who receive deposits and carry out other banking-related activities, including safekeeping, asset management, fiduciary asset management and related activities “, can we read on the dedicated site. In other words, establishments receiving SPDI approval are able to offer traditional banking services alongside crypto services.
So, Marco Santori, legal director of Krakenrecently revealed on Frank Chaparro’s microphone, in a The Block podcast, that ” Kraken is well on its way to launch, coming very soon “. He adds, not without a touch of humour:
“We’re going to have these pens with the little ball chains. We’re going to order thousands of them and attach them to the offices of Wall Street banks everywhere. With our logo. »
An announcement that is all the more surprising since Kraken has just been severely penalized by the United States Securities and Exchange Commission (SEC), finding itself forced to stop its staking services on American soil, but also being inflicted a painful $30 million fine.
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What will this new Kraken subsidiary offer?
Presenting himself as ” the first regulated U.S. bank to provide comprehensive custodial, custodial and trust services for digital assets », Kraken Bank will have to face regulations almost identical to those imposed on traditional banks.
According to the press release issued by Kraken when it obtained the SDPI license, the purpose of this bank will be to act as a bridge between the world of cryptocurrencies and that of traditional finance, which should in particular allow the exchange founded by Jesse Powell to develop new products for its future customers and those already existing.
The services offered by Kraken Bank should notably include the custody of digital assets, transfer and financing services, cryptocurrency staking, a suite of complete banking offers, a debit card, but also a whole range of services to intended for professionals and businesses.
Kraken Bank is expected to operate from purpose-built offices in Cheyenne, the state capital of Wyoming. Moreover, it plans to apply an online banking model » facilitating account management for future clients.
Note that Kraken Bank should first offer its services in the United States, but plans to expand internationally in the longer term.
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Sources: The Block, Blog
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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