Crypto Exchange Kraken To Launch New Crypto Bank in US Amid Regulatory Issue

US-based crypto exchange Kraken is still launching a new Wyoming-based crypto bank despite the U.S. Securities and Exchange Commission’s (SEC) recent banning of the exchange’s staking service.

Kraken Support directly told a Twitter user that Kraken Bank is still on its way, with an initial offering to customers in the USA.

“Kraken Bank is not open yet but on its way. The offering will initially be available to existing Kraken clients in the USA with potential international expansion in the future.”

Kraken announced in 2020 that it is officially opening a crypto bank, designated as a special purpose depository institution (SPDI).

“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.”

According to Kraken, SPDIs are banks with “forward-facing regulatory frameworks.”

Says Kraken Bank CEO David Kinitsky,“We’re thrilled to work in a state so aligned with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”

The bank plans to offer digital assets custody, staking services, funding services, wire transfers, debit cards, “enhanced” crypto custody offerings, and a mobile banking app.

Last month, the SEC made Kraken discontinue its staking services, deeming the program a violation of securities law.