Kraken has been approved by the State of Wyoming to form the first Special Purpose Depository Institution (SPDI) in the world. Kraken Financial
will be the first digital asset company in the United States to receive bank charter and will also be the first regulated bank to provide services for digital assets, including comprehensive deposit-taking, custody and fiduciary services. Kraken clients will have access to pay bills and receive salaries in cryptocurrency, as well as using digital assets for investment and trading portfolios and exchanging national currencies.
As an SPDI bank charter, Kraken is permitted to build the bridge between the cryptocurrency economy of the future financial ecosystem in house. By implementing this charter, Kraken can operate as a fully independent bank and eliminate the need for third-party institutions. Kraken Financial will operate a mobile-first banking model and offer an easy way for clients to access and manage their money through a single-portal client experience.
Initially, Kraken Financial will operate locally in Wyoming, with a physical presence in Cheyenne. Kraken aims to expand their reach across the United States and then globally.
As a custody bank that was specifically designed for digital assets, Kraken will be regulated in the same manner as other U.S. banks by the Wyoming Division of Banking. Currently, the division is developing the first regulatory manual for banks and digital assets. As a bank, Kraken Financial is required by Wyoming law to maintain 100% reserves of its deposits of fiat currency at all times, therefore allowing Kraken Financial the ability to fulfil the demand for withdrawals if every client was to initiate a full withdrawal. Kraken is the process of developing the supporting polices and procedures to act as a Qualified Custodian for investment professionals.
Kraken Financial will continue to evolve over time and in the first year of operations, the following services will be provided:
- digital asset custody
- demand/deposit accounts (DDAs)
- Wire transfer and funding services
The following additional supporting services will be added in the future:
- enhanced digital asset custody offerings
- digital asset staking
- trust account and administration
Additional services for individual accounts:
- A complete online and mobile banking suite of products
- A debit card that clients. Can use to spend their crypto funds
Additional services for corporate clients:
- account management services
- bank comfort letters
- deposit verifications
- proof of funds attestations