← Back Published on

Kraken to Launch its Own Bank

Reportedly cryptocurrency exchange Kraken is moving towards its idea to launch its own bank. The latest development comes after the troubled exchange being charged by the U.S Securities and Exchange Commission for failing to register crypto assets staking program.

Kraken had already mentioned its plans for its bank phased launch in 2022 adding first services will be provided to US Kraken clients then to others.

Marco Santori, Chief Legal Officer of Kraken, told Frank Chaparro of The Block on the Scoop podcast, Kraken Bank is nearing its launch “we’re going to have those pens with ball chains, we’re going to order thousands of them and attach them to the desks of Wall Street banks everywhere with our logo.”

For an industry still dealing with the widespread fallout of FTX plus multiple enforcement actions over the past several weeks citing uncertainty on the regulatory font a new bank born from the crypto sector comes at a boisterous time for the industry.

As one of the most crypto friendly bank Silvergate shuts down Silvergate Exchange Network due to capitalization troubles, Santori reaffirmed that Krakens banking relationships were secure adding the exchange has a diversified group of banks all around the world.

Despite this Santori did warn increased caution on the banking front could stifle innovation within the sector.