Kraken exchange wants in on ETF euphoria
Kraken platform has indicated plans to launch a US-listed stock and ETF trading services in 2024, which if successful, would represent the exchange’s first venture outside crypto. The platform already accounts for 3.5% of the global spot trading market share but has been recording dwindling trading volumes of late.
It should be noted that Kraken is coming from a recent fight with the US SEC, coughing up to $30 million in settlement fees for failure to register its crypto-staking service as a security offering. Even after the settlement, the exchange was compelled to terminate the staking service for US customers.
The latest boldness, therefore, comes as the platform awaits approval for a broker-dealer license from the US Financial Industry Regulatory Authority, with regulatory licenses and regulatory permits to operate in the UK already in hand. Based on the report, which cited persons unnamed for obvious reasons, Kraken crypto exchange will set up a new subsidiary just for the venture, christened Kraken Securities, to begin offering trading in the US and UK.
Once the venture premieres, the platform’s eligible customers will be prompted to activate the service, with a portfolio of crypto, stocks, and ETFs shown within one account balance.
Kraken shorter-term goals
The US-listed stock and ETF trading services are a longer-term goal, expected in 2024. For the shorter term, the crypto exchange, led by CEO Jesse Powell, will be debuting a qualified custodian for institutional clients within the week. This custodian is expected to be independent of Kraken. Notably, the platform has already applied for an approval from the state of Wyoming.
If the approval does come, it will set the exchange in line as an industry competitor against Robinhood Markets Inc., in a space where competitive advantage borders along commission-free services. Other players in that space include Public.com, which like Robinhood, already has presence established in the UK and will launch later in the year.
Meanwhile, the exchange recently secured regulatory approvals for its European expansion plans with intentions to offer fiat and crypto-related services. Beyond Europe, it also has an E-Money Institution (EMI) license from the Central Bank of Ireland and is recognized in Spain as a Virtual Asset Service Provider (VASP).
