Home Coins Bitcoin (BTC) Kraken Cryptocurrency Exchange Gets US Banking License, Plans to Be Global Bank

Kraken Cryptocurrency Exchange Gets US Banking License, Plans to Be Global Bank


Cryptocurrency trading platform Kraken has received a banking license recognized under federal law to operate as a bank in the U.S. The company has outlined its plans to offer a number of cryptocurrency-focused financial services locally and globally.

Kraken Now a US Bank

Kraken announced Wednesday that it has received a U.S. bank charter. “The state of Wyoming has approved Kraken’s application to form the world’s first Special Purpose Depository Institution (SPDI), tentatively called Kraken Financial,” the company detailed, elaborating:

Kraken Financial is the first digital asset company in U.S. history to receive a bank charter recognized under federal and state law.

The announcement further states that Kraken Financial “will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets.”

The Wyoming Legislature enacted HB 74 last year, which authorized the chartering of Special Purpose Depository Institutions, which Kraken described as custody banks for digital assets. As a bank, Wyoming law requires Kraken Financial to maintain 100% reserves of its deposits of fiat currency at all times. “If every client were to demand withdrawals of their fiat at the same moment, Kraken Financial would be able to fulfill each withdrawal immediately without regard to how many loans we had outstanding,” the company emphasized.

Kraken Financial will be regulated by the Wyoming Division of Banking. It will have a permanent physical presence in Cheyenne with back-office teams and functions. Kraken clarified that it “will operate an online and mobile-first banking model.”

The company explained that its banking operations “will start locally, but will soon operate globally,” noting that the SPDI charter will help expand its reach across the United States, “and will also help the broader Kraken organization to service companies around the world.” Initially, accounts are only available to U.S. residents, but the company says, “We hope to expand globally soon.”

Kraken also outlined the services it plans to offer. In the first year of operations, digital asset custody, demand deposit accounts, wire transfers, and funding services will be available. Within the next few years, more services will be added, such as staking, trust accounts, a complete suite of online and mobile banking services, and debit cards.

Will you open an account at the Kraken bank? Let us know in the comments section below.

Tags in this story
kraken bank, kraken bank charter, kraken banking services, kraken bitcoin, kraken crypto, kraken cryptocurrency, kraken exchange, kraken stock, kraken stock price, kraken us bank, payward inc

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
474FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,553FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.18
GBP
1.31
CHF
1.10
NOK
0.11
JPY
0.01
CAD
0.76
AUD
0.71

Most Popular

SEC director who called Ethereum ‘sufficiently decentralized’ to leave agency later this year

An early voice on decentralization and crypto guidance within the Securities and Exchange Commission (SEC) is leaving the agency. Director of the Division...

Announcing Incentivized Liquidity Mining on Loopring’s L2 DEX | by Will Brealey | PieDAO | Oct, 2020

Update from the bakery:You can now liquidity mine our DeFi indices and governance token DOUGH on Loopring.io. We’re incentivizing all three pairs, so...
bitcoin
Bitcoin (BTC) $ 13,649.32
ethereum
Ethereum (ETH) $ 405.14
ripple
XRP (XRP) $ 0.251178
tether
Tether (USDT) $ 0.999479
bitcoin-cash
Bitcoin Cash (BCH) $ 264.62
bitcoin-cash-sv
Bitcoin SV (BSV) $ 175.54
litecoin
Litecoin (LTC) $ 57.75
eos
EOS (EOS) $ 2.66
binancecoin
Binance Coin (BNB) $ 31.83
okb
OKB (OKB) $ 4.69
tezos
Tezos (XTZ) $ 2.09
leo-token
LEO Token (LEO) $ 1.28
cardano
Cardano (ADA) $ 0.103779
monero
Monero (XMR) $ 133.67
stellar
Stellar (XLM) $ 0.081562
chainlink
Chainlink (LINK) $ 12.19
huobi-token
Huobi Token (HT) $ 4.33
tron
TRON (TRX) $ 0.026968
usd-coin
USD Coin (USDC) $ 0.998979
dash
Dash (DASH) $ 70.60
neo
NEO (NEO) $ 17.08
iota
IOTA (MIOTA) $ 0.278971
nem
NEM (XEM) $ 0.098046
zcash
Zcash (ZEC) $ 60.52
maker
Maker (MKR) $ 584.23
paxos-standard
Paxos Standard (PAX) $ 0.998773
ethereum-classic
Ethereum Classic (ETC) $ 5.48
vechain
VeChain (VET) $ 0.011427
true-usd
TrueUSD (TUSD) $ 0.999121
ftx-token
FTX Token (FTT) $ 4.04
kucoin-shares
KuCoin Shares (KCS) $ 0.852284
waves
Waves (WAVES) $ 3.18