Kraken exchange becomes licensed to form a bank and offer digital assets services.
Kraken, a cryptocurrency exchange, will launch the first ever crypto-bank in the State of Wyoming, according to company’s blog. It will be the world’s first Special Purpose Depository Institution (SPDI), called Kraken Financial, but subject to name change. The clients will be able to use digital assets to create investment portfolios, pay bills and get salary.
At first the bank will only be available to US residents but subsequently is expected to expand globally. The objective is to become a bridge between a traditional financial ecosystem and digital assets. The SPDI charter allows Kraken to provide services, focusing on both virtual money and national currency.
Wyoming is famous for its business-friendly environment and ease of incorporating a company, drawing not only local entrepreneurs but businesses from around the world.
David Kinitsky, CEO of Kraken Financial, said: “We’re thrilled to work in a state so aligned with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”
Kraken Financial joins the ranks of banks like SEBA, that obtained a crypto bank status in 2019 by Swiss financial regulator, FINMA, as well as state-backed Kantonalbank probing its way into the crypto-territory. Sygnum bank, with offices in Switzerland and Singapore, was also granted a digital assets license by Singapore authorities last year.
In July, US national banks were authorised to keep cryptographic keys to virtual wallets. The authorisation was granted by the U.S. Office of the Comptroller of the Currency (OCC), under the Department of Treasury. The statement issued by the OCC read that banks could offer more reliable custodial solutions than those available on the market.