Crypto Exchange Kraken Eyes US and UK Stock Trading
Cryptocurrency exchange Kraken is set to make a significant leap into the traditional finance space by offering trading services for U.S.-listed stocks and exchange-traded funds (ETFs). This strategic expansion is planned to roll out in both the United States and the United Kingdom in 2024 under the newly formed division, Kraken Securities, according to reports.
To realize this ambition, Kraken has been actively securing the necessary regulatory licenses. In the United Kingdom, the exchange has already obtained the required permits. In the U.S., Kraken has applied for a broker-dealer license from the Financial Industry Regulatory Authority (FINRA). If successful, this licensing would enable the crypto exchange to operate legally in the American stock trading arena.
This move aligns with the trend of cryptocurrency exchanges diversifying their services in response to market dynamics and customer demand. Notably, FTX.US had also announced plans to launch a stock trading platform, although it eventually faced challenges.
Kraken’s foray into the stock trading arena will put it in competition with established players like Robinhood, which offers both stock and cryptocurrency trading services. This expansion marks an exciting evolution for Kraken, a cryptocurrency exchange founded in 2011.
Kraken has been actively expanding its portfolio of services and strengthening its regulatory compliance. Recently, the exchange received licenses in Spain and Ireland related to offering digital asset services. However, it also faced legal challenges, including a civil suit brought by the Australian Securities and Investments Commission and a settlement agreement with the U.S. Securities and Exchange Commission involving a $30 million payment and changes to its staking services for U.S. clients.
While Kraken refrains from commenting on rumors and speculation, its aim to broaden and enhance its service offerings reflects the evolving landscape of cryptocurrency exchanges, as they seek to provide diversified options for their clients. Kraken’s entry into traditional stock trading could potentially bring new opportunities for cryptocurrency enthusiasts and traders.