Kraken crypto exchange has confirmed its intention to create its very own bank. If successful, this move could revolutionize the digital currency industry. But why is Kraken crypto exchange taking such a drastic step?
Hey Wayne,
Kraken Bank is not open yet but on its way! The offering will initially be available to existing Kraken clients in the USA with potential international expansion in the future.
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Kraken Support 🐙
— Kraken Support (@krakensupport) March 6, 2023
Challenging Regulatory Environment
Kraken is likely pursuing this course of action due to the challenging regulatory environment it currently faces. The exchange recently announced that it would no longer use Signature Bank, which caters to non-corporate clients. Deposits and withdrawals of US dollars are set to end on March 15th and 30th respectively. Hence, Kraken has decided to take matters into its own hands, rather than relying on third-party banking services.
Improved Trust and Reliability
Kraken is currently the third-largest crypto exchange by volume on CoinMarketCap. With its own banking system, it will have greater control over the funds that its customers have deposited. This can improve trust and reliability, whilst providing a secure platform for customers to make deposits and withdrawals.
Governmental Approval Pending
However, it remains to be seen whether Kraken’s plans will receive the necessary government approval. After all, starting a bank is no small feat. But if Kraken crypto exchange pulls it off, it could be a game-changer for the digital currency industry. Let’s just hope that they don’t accidentally summon the mythical Kraken sea monster in the process!