Kraken, a crypto exchange, is planning to roll out its own bank, Kraken Bank, despite its difficult relationship with the United States regulatory agencies. The offering will initially be available to the existing clients of the exchange in the US, with potential international expansion in the cards. The bank will be based on the Wyoming SPDI framework, which requires it to prioritize asset custody and safekeeping, data protection, security standards, and stringent regulatory oversight. All assets will be kept on hand and available as cash or cash equivalents, and Kraken Bank will have significant capital reserves and surpluses of its own capital to cover the full balance of all clients. The launch of Kraken Bank was initially planned for 2022 but was delayed due to unknown reasons.
Meanwhile, Kraken recently agreed to a $30 million settlement with the SEC after being charged for failing to register its crypto asset staking program. The company terminated the service and paid the fine without admitting to or denying any wrongdoing, with its legal officer noting that the staking feature had contributed a minor portion of the company’s revenue. Marco Santori, Kraken’s chief legal officer, affirmed that the launch of Kraken Bank is very much on track and went on to add that the company will be ordering thousands of pens with little ball chains to attach to the desks of Wall Street banks everywhere, with their logo.