It was announced that the State of Wyoming has approved Kraken’s application to form the world’s first Special Purpose Depository Institution (SPDI), tentatively called Kraken Financial.
Headquartered in Cheyenne, Wyoming, Kraken Financial is the first digital asset company in U.S. history to receive a bank charter recognized under federal and state law, and will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets.
From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Financial will enable Kraken clients in the U.S. to bank seamlessly between digital assets and national currencies.
David Kinitsky, CEO of Kraken Financial, said:“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.”
This new institution will be regulated in largely the same manner as other U.S. banks.
During the first year of operation, Kraken Financial will only offer accounts to U.S. residents, and SPDI plans to give clients the ability to deposit USD and custody digital assets at a regulated state-chartered bank. These banking services will be seamlessly integrated into the existing exchange services, providing clients better funding infrastructure, a better experience and enhanced regulatory clarity.
Additionally, because of its position as a bridge between crypto and traditional finance, Kraken will offer the following crypto-focused services in our first year of operations:
- Digital asset custody
- Demand/deposit accounts (DDAs)
- Wire transfer and funding services.
Kraken, earlier on 2018 started recruiting a team in the UAE and applied for an OTC desk license with ADGM