The American crypto exchange Kraken has confirmed its intention to open its own banking institution, despite the difficult regulatory environment and complaints from regulators.
The statement came amid Kraken’s refusal to use Signature Bank, which was under investigation by US law enforcement agencies in the case of complicity in the fraud of the FTX Group.
As follows from a recent message on Twitter, a specific date for the opening of the bank, tentatively called Kraken Financial, has not yet been determined, but every client of the exchange can already subscribe to notifications and be aware of upcoming events.
Heard you are launching a bank from @Crypto_Crib_ is that true???
— Wayne Sand (@sandeepbrwayne) March 6, 2023
First, Kraken Financial’s services will be available to the exchange’s customers in the United States, and then, the exchange promises, worldwide.
Earlier in a media interview, Kraken Financial CEO David Kinitsky and Kraken CLO CEO Marco Santori said that with the help of their bank, the world’s third-largest crypto exchange will be able to reduce its dependence on the services of third-party financial institutions.
Wyoming regulators granted Kraken a license to create a crypto bank as a special purpose depository institution (SPDI) back in 2020. In fact, this allowed Kraken to become the first cryptocurrency exchange in the US to open its own bank. The status of a regulated depository institution allows the bank to provide custodial services and store digital assets of the exchange’s clients, manage payment systems and process client payments both in national currencies and in crypto assets.
At the beginning of March, Kraken announced the termination of operations in the United Arab Emirates, as well as support for retail and institutional clients in this region of the world.
