Kraken becomes a Bank

Famous and well used Crypto exchange Kraken is thrilled to announce that the State of Wyoming approved Kraken’s application to form the world’s first Special Purpose Depository Institution (SPDI), and has granted a charter to Wyoming’s newest state-chartered bank, tentatively called “Kraken Financial.”

Headquartered in Cheyenne, Wyoming, Kraken Financial will enable Kraken clients in the U.S. to bank seamlessly between digital assets and national currencies.

From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Financial will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets. This new institution will be regulated in largely the same manner as other U.S. banks.

Our offerings will evolve over time, but we plan to provide clients with everything they expect from a seamless banking gateway between digital assets and national currencies.

During its first year of operations, the SPDI plans to give clients the ability to deposit USD and custody digital assets at a regulated state-chartered bank. These banking services will be seamlessly integrated into the existing exchange services, providing clients better funding infrastructure, a better experience and enhanced regulatory clarity.

Additionally, because of Kraken position as a bridge between crypto and traditional finance, they will offer the following crypto-focused services in the first year of operations:

• Digital asset custody
• Demand/deposit accounts (DDAs)
• Wire transfer and funding services.

They anticipate supporting additional services over the next few years, including:

• Enhanced digital asset custody offerings
• Digital asset staking
• Trust account and administration

Other services for individual accounts:

• A complete online and mobile banking suite of products
• A debit card that clients can use to spend their crypto funds

Other services for corporate clients:

• Account management services
• Bank comfort letters
• Deposit verifications
• Proof of funds attestations

Finally, Kraken expects to be able to offer additional retail, wealth management and treasury services (and potentially other asset classes such as securities), so stay tuned!

For more information on all the ways Krakens new license will improve the client experience, visit the Kraken blog for a full FAQ.