Kraken Expanding Into Stock Market Trading Services
Kraken, a well-established crypto exchange that has been active for over 12 years, is reportedly planning to enter the stock market for the first time. This move comes as a response to the declining interest in cryptocurrencies during the ongoing bear market.
Upgrading Capabilities
According to an insider source who spoke with Bloomberg, Kraken is also working on improving its prime brokerage services and launching a qualified custodian service specifically designed for institutional investors. The custodian service will be separate from the exchange to prevent the mingling of funds. Currently, Kraken is awaiting approval from the state of Wyoming before launching this service.
While no specific date has been mentioned for the custodian arm, Kraken’s new stock trading service, potentially named Kraken Securities, is expected to be launched in 2024.
A New Player in Zero Commission Market
Kraken Securities aims to be a zero-commission service in order to attract both new and existing customers. Similar services like Robinhood and Revolut have experienced success by offering zero-commission trading, and Kraken’s long-standing presence in the crypto market adds an extra layer of legitimacy to its offering.
Once live, eligible Kraken users will be able to sign up for the stock trading service and view their entire investment portfolio in one integrated balance.
Regulatory Approvals and Market Share
Kraken has applied for a broker-dealer license from the Financial Industry Regulatory Authority (FINRA) in the US and has already received approval from its UK counterparts. These regulatory approvals are expected to bolster Kraken’s numbers across various fields.
In recent months, Kraken briefly became the US exchange with the highest liquidity in popular altcoins. It also achieved good results in European and Australian markets.
Overall, Kraken’s expansion into the stock market and its strong performance in the crypto market position it as a significant player in the industry.
Hot Take: Kraken Diversifies Its Offerings to Attract Users
Kraken’s decision to enter the stock market and expand its services beyond cryptocurrencies is a strategic move to capture new customers and address the decline in interest caused by the bear market. By offering zero-commission trading and a separate custodian service for institutional investors, Kraken aims to attract a wide range of users and establish itself as a reputable platform. With regulatory approvals underway and its strong performance in various markets, Kraken is well-positioned to make a significant impact in both the crypto and stock trading industries.
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