Kraken Sets Sights on Becoming First US-Based Crypto Bank
Kraken, a US-based cryptocurrency exchange, is still planning to launch a new crypto bank in Wyoming, despite the recent SEC ban on its staking service.
In a statement made by Kraken Support on Twitter, the exchange confirmed that Kraken Bank is still on its way and will initially be available to existing Kraken clients in the USA with potential international expansion in the future.
Kraken announced its plans to open a special purpose depository institution (SPDI) designated as a crypto bank in 2020.
The bank aims to offer services, including digital asset custody, staking, wire transfers, funding, debit cards, an enhanced custody offering, and a mobile banking app. It is the first crypto company to be awarded a US state banking charter.
Although the SEC banned Kraken’s staking service last month, the exchange is pushing ahead with its plans for a forward-facing regulatory framework in Wyoming.
According to Kraken, SPDIs are banks with “forward-facing regulatory frameworks.” The bank’s CEO, David Kinitsky, said, “We’re thrilled to work in a state so aligned with our philosophy and values.
Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”
Kraken’s decision to launch a crypto bank in Wyoming has been met with excitement by many in the industry, who see it as a sign of growing legitimacy for cryptocurrencies.
While the SEC ban on Kraken’s staking service has caused some concern, the exchange’s commitment to launching its crypto bank suggests that it is still optimistic about the future of the industry.