One of the biggest and oldest crypto exchange has become a bank like JP Morgan or Goldman Sachs after Kraken Financial became a Special Purpose Depository Institution (SPDI) and was awarded the charter of a full on bank.
“From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Financial will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets.
This new institution will be regulated in largely the same manner as other U.S. banks,” they say.
That makes this the only crypto exchange to also be a bank with Kraken handling some $220 million in trading volumes during the past 24 hours.
Initially focused on just bitcoin trading, they’ve now expanded to many other cryptocurrencies and tokens in addition to offering futures.
They’re based in San Francisco but were focused on serving the European market with euro trading pairs.
Now however their priority might shift to USA to give Coinbase some competition as presumably deposited fiat on Kraken would now be federally insured, but the statement doesn’t clarify.
They say however this bank charter will allow them to provide additional services, including trust accounts and a debit card that clients can use to spend their crypto funds as well as a complete online and mobile banking suite of products.
Meaning this is becoming a full on crypto bank, the first of its kind and perhaps the first to shake the banking industry through direct competition on their own turf.