Kraken Launches Qualified Custody Service for Institutions
Kraken, the popular cryptocurrency exchange, has announced the launch of its qualified custody service for institutional investors. The new service aims to provide a secure and regulated solution for institutions looking to hold cryptocurrencies.
State-Chartered Banking Arm in Wyoming
The qualified custody service is facilitated by Kraken’s state-chartered banking arm, Kraken Financial, based in Wyoming. This move allows Kraken Financial to offer custody services that fully meet the requirements of institutional investors.
Rigorous Security and Operational Checks
Trevor Rutar, CEO of Kraken Financial, highlighted the benefits of operating in Wyoming, stating that the state’s clear regulatory structure enables them to subject their custody service to some of the most rigorous security and operational checks in the crypto industry.
Institutional Services and Competitors
Kraken launched its institutional services earlier this year, joining the ranks of other major players in the industry. Notably, BlackRock, Franklin Templeton, and Grayscale Investments have tapped Coinbase as their spot bitcoin ETF custodian.
Hot Take: Growth in Institutional Custody Services
The launch of Kraken’s qualified custody service reflects the growing demand for secure and regulated solutions in the cryptocurrency space. As institutional interest in cryptocurrencies continues to rise, custodians like Kraken play a crucial role in providing a trusted infrastructure for investors.
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