Kraken Bank to become a reality! Kraken Bank will become a reality as the crypto currency exchange launches as a bank under a new regulatory framework in Wyoming! The announcement was made earlier today.
Kraken Financial will be regulated by the Wyoming Division of Banking under a Special Purpose Depository Institution. This will allow Kraken to offer certain banking functions to customers and serve as the exchange’s primary banking relationship.
Kraken, like other cryptocurrency companies, have relied on third-party providers for wire transfers and other financial services to enable it and its customers to engage with the broader financial system.
Crypto companies have always had a challenging and precarious relationship with the broader financial ecosystem. However, a slow shift is emerging – with JPMorgan recently faking on Coinbase and Gemini as banking clients.
Clients will be able to bank directly with Kraken Financial just as they would with their existing bank.
Kraken isn’t the only crypto company with financial institution aspirations. BlockFi is building a suite of wealth-management products including a credit card, and Abra has its own ambitions to redefine the traditional banking stack.
Kraken still has a ways to go before it can officially launch as a new bank. They’re lining up banking partners and in the midst of opening an account with the Federal Reserve. It’s not clear as to whether or not all states will recognize Kraken’s new bank charter.
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