Victor Ugochukwu · Dec 14, 2020 . 5min read
Kraken is finally released as it acquires Crypto Bank License in Wyoming
Kraken will be the first regulated banking entity in the United States to offer comprehensive digital asset financial services.
By Victor Ugochukwu · Sep 18, 2020 . 6min read
Crypto exchange, Kraken has gotten the license to launch a bank under a new regulatory framework in the state of Wyoming. This makes it the first regulated banking entity in the United States to offer comprehensive digital assets financial services.
The cryptocurrency exchange specifically acquired the Special Purpose Depository Institution (SPDI) license, which was custom-made for entities operating in the digital asset sphere and recognized under federal and state law. SPDI enables it to now legally operate a banking subsidiary, thus announcing it as Kraken Financial. This will provide comprehensive deposit-taking, custody and fiduciary services for digital assets.
Consequently, Kraken Financial will start serving U.S. clients who have banking needs in areas of digital assets and national currencies. However, the bank charter also plans to aid Kraken Financial a global reach as it says,
The SPDI charter will aid us in expanding Kraken’s reach across the United States, and will also help the broader Kraken organization to service companies around the world.
Additionally, this license enables Kraken Financial to function as a full-fledged crypto bank without relying on third-party financial institutions, hence bolstering its chances of launching innovative suites of products for its users. During its first year, it will offer digital assets custody, demand/deposit accounts (DDAs), wire transfer and funding services. In the future progress, it plans on providing additional financial services. It will also offer enhanced digital asset custody offerings, digital asset staking, trust account and administration, etc., to individual clients.
As for corporate clients, Kraken Financial will be offering account management services, bank comfort letters, deposit verifications etc. It will also include corporate client proof of funds attestations for them to service their own customers properly.
Kraken rebrands to better project itself on its new crypto bank license with a new logo.
Just as the community was celebrating the news of the Kraken acquiring a banking charter, it released a new logo. The exchange tweeted
New logo approved. Giddy-up!
This must surely be a way of rebranding itself for the journey ahead. Moreover, as this opens a new chapter for cryptocurrency users in the U.S. other big exchanges like Binance, Coinbase etc., may be pursuing a similar path.
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