Kraken presented its first crypto offering under its recently expanded institutional banner, which aims to deliver digital asset services for larger participants.
Kraken announced its licensed institutional custodial services underpinned by a Wyoming state banking license as the crypto exchange moves to compete with firms like Coinbase for a share of the U.S. virtual asset market.
Head of Kraken Institutional Tim Ogilvie said in a statement that the success of spot Bitcoin (BTC) ETFs in America effectively reignited demand for qualified crypto custody. Eight BTC ETF issuers chose Coinbase to safeguard Bitcoin for the funds.
The latest offering operates under the state-chartered bank Kraken Financial. Wyoming regulators granted the crypto startup a special purpose depository institution permit in 2020, allowing the firm to hold digital assets and run deposit accounts for institutions on a full-reserve basis.
Kraken Custody is a solution that exists separately from the exchange. Funds are remotely segregated, and 24/7 withdrawals are enabled. Kraken CEO Trevor Rutar remarked that the company can cater to institutional needs thanks to Wyoming’s clear regulatory structure.
“Under the supervision of the Wyoming Division of Banking, Kraken Financial will be subject to some of the most rigorous security and operational checks of any crypto custodian. This makes the chartered firm an ideal entity to offer custody in line with what institutions need to engage in the crypto asset-vertical.”
Trevor Rutar, Kraken CEO
The exchange also expands its footprint outside the U.S., particularly in European markets. As crypto.news reported, the Dutch Central Bank granted a virtual asset service provider license to the crypto exchange that Jesse Powell and Thanh Luu co-founded in 2011.
