09-17-2020 icon

U.S. Kraken Exchange Gets License to Become America’s First Crypto Bank

By Sagetwriter
Kraken Exchange Cryptocurrency Bank Licence

According to an official announcement, Kraken – a United States based cryptocurrency exchange has obtained SPDI approval to create America’s first crypto bank set to serve clients from 49 states.

Reports say Kraken received a unanimous vote by the Banking Board of Wyoming – a U.S. state known for its crypto and blockchain-friendly regulation, granting it license to form the new venture – Kraken Financial.

This makes Kraken the first US crypto exchange to create and function as a bank also called a “Special Purpose Depository Institution (SPDI); meaning Kraken can now hold custody of digital assets (cryptocurrencies), operate payment systems, and allow customers easily convert fiat and crypto.

Confirming the news, David Kinitsky, CEO of Kraken Financial remaked:

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.”

“…New and existing clients will have the opportunity to apply for our traditional financial accounts. Upon completing the onboarding procedures, they will be able to quickly and seamlessly fund their accounts on the exchange.”

The CEO says the bank is expected to launch later this year or at the beginning of Q1 2021.

The development continues a list of activities which gradually reduce the gap between cryptocurrency exchanges and traditional financial institutions (banks); as more partnerships and regulatory approvals have been made in recent months.

Also Read: US Office of the Comptroller of Currency (OCC) approves national banks to offer crypto custody services to clients.