Kraken confirms plans to launch its own bank

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Kraken confirms plans to launch its own bank

By Benson Toti - min read
  • Kraken says the crypto bank is on track for launch.
  • The crypto exchange will initially offer the Kraken Bank services to customers in the US.
  • The launch of a new crypto-friendly bank comes at a time the crypto bank Silvergate continues to falter after the collapse of FTX.

Kraken will soon be launching its own bank, the cryptocurrency exchange has confirmed.

A tweet from the official Kraken Support account noted the Kraken Bank was on track and will initially be available to the crypto platform’s customers in the US.

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.