Crypto Exchange Kraken Launches New Crypto Bank in US Amid Regulatory Troubles

US-based crypto exchange Kraken is still launching a new Wyoming-based crypto bank despite the recent US Securities and Exchange Commission (SEC) ban on the exchange’s staking service.

Kraken Support directly told one Twitter user said Kraken Bank is still on its way, with an initial offering to customers in the US.

“Kraken Bank is not open yet but is coming. The offering will initially be available to existing Kraken customers in the US with potential international expansion in the future.”

Kraken announced in 2020 that it is officially opening a crypto bank, designated as a special purpose depository institution (SPDI).

“Kraken has always been on the financial frontier. Now we are breaking new ground by opening a Wyoming-based crypto bank.

We called it Kraken Financial, but due to overwhelming demand, it will be known as Kraken Bank. We are the first (ever) crypto company to receive a state banking charter from the US. It is known as a Special Purpose Depository Institution or SPDI.”

According to Kraken, SPDIs are banks with “forward-looking regulatory frameworks.”

Says David Kinitsky, CEO of Kraken Bank,

“We are delighted to be working in a state that is so in line with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”

The bank plans to offer digital asset custody, staking services, financing services, wire transfers, debit cards, “enhanced” crypto custody offerings, and a mobile banking app.

Last month, the SEC forced Kraken to shut down its staking services, alleging the program was a violation of securities laws.

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Featured image: Shutterstock/Yueh Chiang

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