In an official announcement published on September 16 on the company’s blog, it is said that the new financial institution, tentatively named Kraken Financial, will act as a specialized depository institution (SPDI). Thus, the company received a banking charter, and Wyoming confirmed its reputation as the center of cryptocurrency innovation in the United States.
Kraken Financial will offer a full range of traditional banking services, including custody, custodian and fiduciary. They will apply to both fiat money and cryptocurrency assets.
Connecting two financial worlds
Kraken said the new bank will offer customers the ability to pay bills and receive salaries in cryptocurrency. Users of the US cryptocurrency exchange will have access to investment services and tools in the United States, as well as the ability to quickly and painlessly convert digital currencies to and from fiat.
The SPDI banking charter is similar to that of a trustee. It also focuses on providing clients with reliable custody services and entry into regulated securities and commodity markets.
The main difference is that Kraken will offer services in cryptocurrency, thus opening up opportunities for the merger of two parallel financial worlds.
Unlike a custodian bank, where the Federal Deposit Insurance Corporation (FDIC) insures customer deposits of no more than $ 250,000, Wyoming requires Kraken Financial to maintain the reserves necessary to cover 100% of all deposits at all times.
This means that the bank is reliably protected even in the event of a massive withdrawal of deposits.
Kraken Financial services
The new bank is ready to offer customers the opportunity to place deposits in cryptocurrency and fiat money through an online portal and mobile application. Initially, digital asset trust services, demand and deposit accounts (DDA), and bank transfers and financing will also be available.
In the coming years, the company also plans to expand digital asset custody services, add staking, trust accounts and administration.
In addition, Kraken promises a full suite of online banking and mobile banking services, a crypto debit card, corporate account management services, wealth management and treasury services, as well as potentially new asset classes such as securities.
For now, Kraken Financial will be open only to US residents, and services are available via the Internet and a mobile application. The company is physically located in Cheyenne, Wyoming, which will house important internal teams and divisions, including a 24/7 customer support center.