Cryptocurrency exchange Kraken has announced the launch of its banking system ‘very soon’. The bank will initially focus on rolling out services to existing clients in the US before tapping the international market.
Kraken is advancing with plans to launch its own bank despite a challenging regulatory environment. Marco Santori, the Chief legal officer of Kraken, stated, “Kraken Bank is very much on track to Launch, very soon.”
The official tweet says, “Kraken bank is not open yet but on its way!”
Its official website states that Kraken Bank will be based on the Wyoming Special Purpose Depository Institution (SPDI) framework allowing it to “prioritize asset custody and safekeeping, data protection, security standards, and stringent regulatory oversight.”
It further said that SPDI banks must maintain total reserves, meaning user funds won’t be lent out without their permission. The website claimed that all assets will be kept on hand and available as cash or, the least risky, most liquid cash equivalents.
Kraken Bank will also have significant capital reserves and surpluses of its own capital to cover the full balance of all clients, even in a scenario of a potential “bank run.”
Recently, due to the Securities and Exchange Commission (SEC) security laws, Kraken has shut down its stacking services in the United States. Even it paid $30 million for the settlement.
Gary Gansler, chairman of the US Securities and Exchange Commission, said in February that the Kraken settlement should “put everyone in the market on notice.”
