By Larry Wright
Kraken exchange is one of the largest cryptocurrency markets operating out of the USA. The firm has recently introduced a disruptive technology that can make a huge impact on the way that traditional banks operate.
Kraken has laid the foundation of Kraken Bank, which is the first attempt of this crypto enterprise to delve into the traditional banking sector.
Commenting on this matter, the official website of Kraken Bank describes itself as an attempt to bring better Bitcoin and crypto banking services to its clients.
The bank is based out of Wyoming and was named Kraken Financial at first. However, the bank changed its name to Kraken Bank, keeping in view the popular demand among clients.
Kraken Bank will also Offer Custodial Services to Investors
The bank has shared that users can expect custodial services for their cash and crypto reserves. These custodial services are extended to both retail and commercial users.
At the same time, broker and financial advisors may also manage their accounts using Kraken Bank for IRAs and other purposes. Kraken Bank has decided to go with the tagline “We are better than your Central Bank”.
Kraken Bank has also shared that it is part of the SPDI Bank, which is part of the Wyoming Division of Banking. It means that just like other SPDI Banks, this bank is required to keep its reserves full at all times.
However, Kraken Bank investors are not going to be covered by the Federal Deposit Insurance Corporation. Therefore, in the event of any financial emergency, the bank cannot depend on the government for bail for now.
Marco Santori is the CLO at Kraken who shared that Kraken exchange filed the charter to get approval for this bank in 2020. The firm received approval recently and got an SPDI certification this year, making it the first crypto bank in the world. He shared on Twitter that Kraken Bank is not yet operational.
However, he maintained that the bank is completing the requirements to go into operations soon. At present, the focus of the crypto bank is set on serving clients hailing from the USA. There are plans to expand to an international audience in the future.
Users may be able to download the official application of the Kraken Bank to access services without needing to visit brick-and-mortar outlets.