In a particularly heavy atmosphere for companies from the blockchain and cryptocurrency industry, Kraken is about to thumb its nose at the US government. In effect, kraken should announce soon the launch of its own bank.
While the American branch of Kraken concluded at the beginning of last February a $30 million deal with the SEC and put an end to its cryptocurrency staking activity in the United States, the company would not slow down its large-scale development strategy.
Thus, although Marco Santori, legal director of krakenconfirms that the recent dispute with the SEC has disrupted the company’s product line in the United States quite significantly, he is hopeful to see Kraken’s banking business to be launched in the coming months.
Therefore, far from the parasitic noises resulting from the pressure of the SEC, Kraken confirms its wish to launch into this new sector and to establish a precedent which could pass a course for all companies in the sector.
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Kraken should soon unveil its own bank
Gary Gensler hoped to significantly curb Kraken’s ambitions. Nevertheless, the pressure put by the SEC on the exchange has simply heightened his ambitions. Thus, while strongly criticizing the institution’s ideology, Marco Santori explains that the launch of the Kraken bank should finally see the light of day.
The Kraken project has been under construction for several years since the company had received a license as early as 2020 to launch its banking activity. Indeed, thanks to the acquisition of an SDPI (Special Purpose Depository Institutions) license, Kraken is able to offer traditional banking services completely independent of its activity in crypto currencies.
Therefore, Marco Santori explains that “Kraken’s banking service is well on the way to being launched and should arrive very soon”. Moreover, the tone used in his speech suggests quite an important ambition for the company.
Indeed, he adds this: “You see these pens with the little ball chains. We’re going to order thousands of them and attach them to the offices of Wall Street banks everywhere. With our logo”. In other words, he hopes to take a prominent place and become a giant in the banking sector in future years.
A future bridge between traditional finance and crypto currencies
At the time of obtaining its license in 2020, Kraken had shared a blog post to detail its intentions in the banking sector. The company explained that it wanted to “become the bridge of trust between the sector of crypto currencies and the current financial ecosystem“.
Thus, Kraken wishes to reduce its dependence on financial institutions while offering new financial products to its users. Kraken explains that in the first year of its bank’s activity, it should offer its customers the following services:
- Custody of digital assets
- Demand/Deposit Accounts
- Transfer and financing service
Finally, Kraken obviously wishes to offer an online and mobile banking model in order to “make it as easy as possible for customers to access and manage their money through a single portal, regardless of the time of day or where they are”.
The bad example Silvergate
This announcement has raised concerns about banks favorable to crypto currencies. In effect, the Silvergate bank had to end its activity due to a serious problem with capitalization.
Nevertheless, Marco Santori assures that “Kraken’s banking relationships are secure and that the company has a diversified group of banks around the world”.
Therefore, although he recognizes that “we are returning to a time when banks are going to be very careful about the accounts they open”, he explains that “Wall Street is going to come out of it and Kraken, just like Coinbasewill also get out of it“.
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