Kraken became the first digital asset company in U.S. history to receive bank charter recognized under federal and state law!

Kraken Bank is planning a phased launch in Q3 2021Frequently asked questionsWait, Kraken is becoming a bitcoin bank?Kraken has always been on the frontier of finance. Now we’re blazing a new trail by opening a Wyoming-based crypto bank.We were calling it Kraken Financial, but due to overwhelming demand, it will be known as Kraken Bank. We’re the first (ever) crypto company to be awarded a U.S. state banking charter. It’s known as a Special Purpose Depository Institution or SPDI. What is an SPDI?It’s a bank focused on clients’ interest in a forward-facing regulatory framework with oversight from the Wyoming Division of Banking.Can I open a bank account with Kraken? When will it launch?We are planning a phased launch in 2021, we’ll roll out to existing U.S. Kraken clients first and will provide more information as it becomes available.In the meantime, you can visit www.kraken.com/sign-up to create your Kraken trading account if you don’t have one.What products will the crypto bank offer?Our bank charter allows us to launch digital-first traditional and crypto banking products, with cryptocurrencies represented as a first-class citizen. We're looking into products like deposit accounts in USD and crypto assets (ex. Bitcoin), multiple funding and payments options, institutional custody products (qualified custody for advisors and broker dealers), IRAs and many more.Where will this be available and could I visit a branch?We will initially focus in the U.S. roll out services to existing clients in the U.S., with potential international expansion in the future.Our plan is to serve our existing clients’ needs online and via mobile devices - we don’t anticipate servicing any in-person, customer-serving activities in our Cheyenne office. Customer support and service will be available 24/7/365.Will my investments be FDIC insured?No. However, Kraken Bank will be fully reserved (i.e., no fractional reserve banking or associated re-hypothecation and lending activities). All assets will be kept on hand and available as cash or the least risky, most liquid cash equivalents. We will also maintain significant capital reserves and surpluses of our own capital to cover the full balance of all clients, even in the event of a “bank run.”We will operate in a safe and sound manner that prioritizes customer fund protection. Therefore, we will not have insolvency risk the FDIC is intended to safeguard. We will never need a bailout or any public-funded backstop, because our goal is to serve your needs and the needs of the community.Sources:https://www.kraken.com/bankhttps://www.youtube.com/watch?v=pxxAlAwcXsQ

Submitted June 01, 2021 at 03:25AM