Kraken, the popular cryptocurrency exchange, has announced plans to launch its own bank despite facing regulatory challenges in the United States. The new offering, called Kraken Bank, will initially be available to existing clients of the exchange in the US, with potential international expansion in the future.
Kraken’s Chief Legal Officer, Marco Santori, confirmed that the bank is on track to launch and will be based on the Wyoming SPDI framework. This framework prioritizes asset custody and safekeeping, data protection, security standards, and stringent regulatory oversight.
One of the key features of Kraken Bank is that it will be required to maintain full reserves, meaning user funds won’t be lent out without their permission. This is a major point of contention in the cryptocurrency industry, as many exchanges have been accused of using customer funds for their own purposes.
Despite the challenges faced by Kraken in the US regulatory environment, the exchange remains committed to expanding its services and offerings. The launch of Kraken Bank is just one example of the company’s dedication to providing innovative solutions for its customers.
As the cryptocurrency industry continues to grow and evolve, it’s clear that companies like Kraken will play an important role in shaping the future of finance. With its new bank offering, Kraken is poised to become a major player in the world of digital assets and financial services.
