Kraken is granted a banking license – becomes the first crypto bank in the world

Sep 17, 2020

Banks and cryptocurrencies have a complicated relationship. For example, Trijo News has previously written about how Swedbank has stopped its customers from buying cryptocurrencies.

In the US, however, bank customers who want a more crypto-friendly alternative will soon have on, Coindesk reports.

Licensed in Wyoming

The US cryptocurrency exchange Kraken, one of the largest in the world, has been granted a banking license in the state of Wyoming.

With this decision, Kraken will be the first crypto exchange in the world to hold its own banking license. Being a bank brings great benefits, David Kinitsky, CEO of Kraken’s banking operations, says.

“By becoming a bank we get direct access to federal payments infrastructure, and we can more seamlessly integrate banking and funding options for customers”, he says according to Coindesk.

Will launch new products

The fact that Kraken now has a license in Wyoming also means that it is easier to establish banking operations in other US states.

According to David Kintsky, the exchange’s customers can expect a number of new products after the decision.

We would expect to offer a host of new products as we get established. Those will range from things like qualified custody for institutions, digital-asset debit cards and savings accounts all the way to new types of asset classes. We can engage with securities and commodities and things like that as a bank”, he tells Coindesk.

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