Crypto

Kraken plans to launch its own FinSME cryptocurrency

While the US Securities and Exchange Commission (SEC) has been having a hard time lately, the Kraken cryptocurrency exchange is showing resilience and is gearing up to launch its own cryptocurrency bank called “Kraken Bank.” This subsidiary will offer a variety of financial services to individuals, professionals and businesses.

Will Kraken become a new cryptocurrency?

Surprising news: Despite the difficult regulatory environment for crypto companies in the US, Kraken plans to launch its own cryptocurrency bank in the near future. This new organization, presented as an independent subsidiary, was licensed by Special Purpose Depository Institutions (SPDI) in 2020 to start operations, but its launch was delayed and the company did not announce it.

This status is granted by the state of Wyoming and is intended for banking institutions that, we quote – according to the conditions written on the site – “ receive deposits and engage in other banking activities, including custody, asset management, asset management and related activities “Thus, these firms will be able to offer both crypto-currency services while maintaining their traditional banking services.

During The Block podcast hosted by Frank Chaparro, Marco Suntory, the company’s general counsel, recently revealed that the platform’s launch is imminent. He added a touch of humor by stating that Kraken planned to buy thousands of ball-chain pens and attach them to Wall Street bank offices with their logo.

This announcement is all the more surprising given that Kraken has just been hit with significant sanctions by the SEC. Sanctions that also resulted in the termination of betting services in the United States, in addition to a $30 million fine.

What does the new branch of Kraken Bank offer?

Kraken Bank positions itself as the first regulated bank in the United States to offer end-to-end custody, custody and trust management services for digital assets. However, it will have to deal with rules almost identical to those that apply to traditional banks.

According to a statement released by Kraken after receiving the SDPI license, the bank aims to serve as a bridge between the cryptocurrency market and traditional finance. This initiative will allow Jesse Powell, the founder of the company, to provide new products to both current and future customers.

Kraken Bank will offer a range of services. These include custody of digital assets, transfers and financing, cryptocurrency staking, comprehensive banking offers, and a debit card. In addition, the platform also offers special services for professionals and companies.

Kraken Bank intends to operate from purpose-built offices in Cheyenne, the state capital of Wyoming. In addition, he intends to create an “online banking model” to make account management easier for his future clients. It’s also worth noting that Kraken Bank originally planned to offer its services in the United States, but now plans to expand internationally in the long term.

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