Kraken confirms plans to launch its own bank

Kraken confirms plans to launch its own bank
Adoption & Regulations
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Kraken Bank is not open yet but on its way! The offering will initially be available to existing Kraken clients in the USA with potential international expansion in the future.

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— Kraken Support (@krakensupport) March 6, 2023

Crypto publication The Block also highlighted the news on Monday morning, citing details from Marco Santori, the chief legal officer at Kraken.

Kraken to launch crypto bank

Kraken says plans for its Wyoming-based crypto bank is an initiative that followed it being granted the Special Purpose Depository Institution, or SDPI approval. The exchange was thus the first crypto company to receive a US state banking charter.

The exchange’s plans for a bank comes as the crypto sector navigates the latest episode of a crypto-related downturn as crypto-friendly bank Silvergate wades through a difficult time. The US-based crypto bank has continued to witness financial gloom since the collapse of crypto exchange FTX.

Kraken itself has also been under increased regulatory pressure, recently agreeing a multi-million dollar settlement with the US Securities and Exchange Commission (SEC) over the exchange’s staking services.

The SEC has also increased its regulatory actions against crypto companies, with stablecoin issuer Paxos one of those facing the agency’s charges. Crypto lender Nexo also recently agreed to a settlement with the SEC a few weeks after announcing a phased out exit from the US market.

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