By Tobi Loba
Going by a recent report, Kraken, a top US-based cryptocurrency exchange is now the first digital asset company to become a United States bank.
According to the report, the State of Wyoming has approved Kraken’s application to form the world’s first Special Purpose Depository Institution (SPDI) called Kraken Financial.
This new development makes Kraken the first regulated United States bank to provide comprehensive deposit-taking, custody, and fiduciary services for crypto assets.
With the additional services such as paying bills and receiving salaries in digital currency into investment and trading portfolios, Kraken Financial will enable the customers of the crypto exchange in the US to bank easily between crypto-assets and fiat currencies.
NEW: Kraken Wins Bank Charter Approvalhttps://t.co/NnJTMWQJQZ
— Kraken Exchange (@krakenfx) September 16, 2020
David Kinitsky, the managing director at Kraken and the CEO of the newly formed Kraken Financial, 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.”
“By becoming a bank we get direct access to federal payments infrastructure, and we can more seamlessly integrate banking and funding options for customers.”
The newly formed Kraken Financial will also give Kraken the ability to operate in more jurisdictions, Kinitsky added.
According to the report, Kraken now has a regulatory passport to take its services into other states without having to deal with state-by-state compliance plan.
“We would expect to offer a host of new products as we get established,” Kinitsky said. “Those will range from things like qualified custody for institutions, digital-asset debit cards and savings accounts all the way to new types of asset classes. We can engage with securities and commodities and things like that as a bank. So a lot more TBD there,” Kinitsky said.
With this milestone, Kraken expects its major revenue to come from fees and services to its customers.
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