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Kraken’s entry into traditional finance will put the exchange in direct competition with US-based trading platform Robinhood.
cryptocurrency exchange Kraken There are reportedly plans to launch trading services for exchange-traded funds (ETFs) and US-listed stocks. 27 September Bloomberg report The exchange is said to be planning to launch its trading services in the United States and the United Kingdom in 2024.
The trading service will reportedly be managed by a division called Kraken Securities and will make Kraken the first crypto exchange to explore investment vehicles outside of crypto. The US-based exchange’s move outside crypto would require a broker-dealer license from the US Financial Industry Regulatory Authority (FISA), for which it has reportedly applied. According to unnamed sources cited in the report, Kraken already has all the licenses needed to satisfy UK financial regulators.
The news comes almost a year after the now-defunct FTX US announced it was planning to launch a stock trading platform. Kraken’s entry into traditional finance will put the exchange in direct competition with Robinhood, the US-based trading platform that offers both traditional stock and cryptocurrency trading options.
According to CoinDeskThe exchange declined to comment directly on the report but said:
“Kraken is always exploring how it can enable global adoption of cryptocurrencies. Although we cannot comment on rumors or speculation, we look to broaden and improve our offering so that customers continue to have secure and uninterrupted access to Kraken’s full product suite.
Kraken has faced increasing regulatory pressure in the US and recently had to board its crypto staking service for US customers and pay a $30 million fine to settle Securities and Exchange Commission (SEC) charges. . It has since been looking to expand its operations outside the United States. The exchange was recently granted a Virtual Asset Provider license in Spain that will allow it to provide crypto trading and custodial wallet services to residents of the country.
Meanwhile, Kraken is facing a civil action from the Australian Securities and Investments Commission (ASIC) for its alleged failure Determining target markets before offering your margin trading product to Australian clients.
Mercy Mutanya is a tech enthusiast, digital marketer, author and IT Business Management student. She enjoys reading, writing, doing crossword puzzles, and watching her favorite TV series.
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