🚨🚨🚨*BREAKING*🚨🚨🚨@Krakenfx just won approval to create America’s first crypto bank.— Marco Santori (@msantoriESQ) September 16, 2020
World, please meet Kraken Financial. Kraken Financial, world.
Wait, a what? Kraken is a BANK?! How did this even happen?!
Allow me to threadeth. 👇
Bridging Crypto and Traditional FinanceAccording to Kraken, the new bank will offer customers the opportunity to pay bills and receive salaries in cryptocurrency. It will also provide U.S. Kraken Exchange users access to crypto investment services and tools alongside seamless switching between fiat and crypto. An SPDI bank charter is similar to a custody bank charter in that it focuses on providing customers with secure custody-focused services and transaction gateways to regulated securities and commodities markets. The major difference, however, is that it offers these services in crypto, which could potentially open up new frontiers for convergence in both fiat and crypto finance.
Unlike a custody bank whose customer deposits are only insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC), Kraken Financial is required by Wyoming to maintain 100% reserves of its fiat deposits at all times. This effectively makes the bank immune to a bank run regardless of the size of its loan book.
We Official Now Baby!! @jespow and @krakenfx I’m cheering real hard for you all. This is big news! As a community we’ve gone from the fringe to seeing one of our OGs become the first digital asset company in U.S. history to receive a bank charter!! https://t.co/1weLQGpUSf— Sam Conner (@samconnerone) September 16, 2020
Kraken Financial’s ServicesAccording to the announcement, the new bank intends to offer customers the ability to deposit fiat and crypto using an online and mobile-first model. In its first year, it says it will offer digital asset custody, Demand/Deposit Accounts (DDA), and wire transfer and funding services.
Over the next few years, Kraken says it will introduce enhanced digital asset custody offerings, digital asset staking, and trust accounts and administration. It also plans to introduce a full-service internet and mobile banking suite, a crypto debit card, corporate account management services, wealth management, and treasury services, and potentially new asset classes altogether, such as securities. For the time being, Kraken Financial will only be available to U.S. residents using web and mobile. Its sole physical location will be in Cheyenne, Wyoming, which will house critical in-house teams and functions such as an around-the-clock customer support center.
This is a massive story!@krakenfx is now officially a bank in Wyoming, with a state-charter that will allow it to move into other jurisdictions.— The Wolf Of All Streets (@scottmelker) September 16, 2020
A CRYPTO BANK IN THE UNITED STATES.
Sorry for yelling.https://t.co/mYU99w430j
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