Earlier today, the world received news that one of the largest US-based crypto exchanges, Kraken, received approval to establish a bank charter as the world’s first Special Purpose Depository Institution, or SPDI, called Kraken Financial. Kraken will be based out of Cheyenne, Wyoming, as Wyoming is one of the few regulators around the world to follow through on talks to foster fintech innovation as disruptive as blockchain technology and cryptocurrencies.
This announcement is a massive advancement for the crypto industry, as Kraken is the first digital asset company in the United States to receive federal and state permissions as a bank charter, according to Kraken’s news release, and will have permission to offer depository, custody and fiduciary services for cryptocurrencies.
While Kraken Financial is currently limiting their services to US-based customers, the exchange’s bank charter permission is a big step for other states to follow suit, as Kraken Financials’ vision is to expand their fiduciary services worldwide.
According to their announcement, Kraken seeks to integrate their banking efforts with their pre-existent crypto exchange services, expanding to digital asset custody, demand and deposit accounts (DDAs), and wire transfer services in their first year, while looking to provide digital asset staking, mobile banking, and cryptocurrency debit cards, among several other initiatives, in the coming years.
Sarson Funds is hopeful that Kraken’s bank charter will bring the crypto ecosystem one step closer to greater regulatory and full-scale adoption.
Read more about this crucial advancement in the crypto space, which is arguably the most pivotal event towards universal crypto adoption in 2020, here.
By Liam McDonald
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