Kraken Ventures into U.S. and U.K. Stock and ETF Markets: A Strategic Leap Beyond Crypto

After dominating the European cryptocurrency markets, Kraken sets its eyes on the stock and ETF sectors in the U.S. and U.K. Significantly; this marks a first for the platform, which has been crypto-focused for 12 rewarding years.

U.S. and U.K. Markets: Kraken’s Next Frontier

Kraken unveiled its intent to commence trading in U.S.-listed stocks and ETFs by 2024. Moreover, citing well-informed sources, Bloomberg revealed the trading would occur through “Kraken Securities,” a freshly minted division. While U.K. regulatory permits are ready, Kraken is eagerly awaiting broker-dealer licenses in the U.S., having filed applications with the Financial Industry Regulatory Authority. Hence, once live, eligible Kraken users will experience a unified dashboard. It will showcase crypto, stocks, and ETFs under a consolidated balance.

Additionally, this week promises another leap for Kraken with its announcement to introduce a qualified custodian for institutional clientele. This entity will function distinctly from Kraken, and a nod from Wyoming’s authorities is in the pipeline.

Competition and Market Dynamics

With this move, Kraken is poised to rival heavyweights such as Robinhood Markets Inc and Public.com. Both already make waves with their zero-commission offerings. Additionally, while Public.com boasts a U.K. footprint, Robinhood anticipates its U.K. debut later this year.

Kraken’s resilience shines through despite witnessing a dip in its trading volumes. It commands an impressive 3.5% slice of the global spot trading pie, its zenith since 2018, as documented by Bloomberg referencing CCData.

Beyond the Headlines

In parallel developments, Kraken basks in the glow of positive strides. These encompass newfound regulatory endorsements to amplify its European imprint for fiat and crypto solutions. This includes the prestigious E-Money Institution (EMI) license from Ireland’s Central Bank and the status of a Virtual Asset Service Provider (VASP) in Spain.

However, it’s not all roses. Kraken recently had to shell out a hefty $30 million to settle with the U.S. SEC. This was for not registering its crypto-staking facility as a security offering. Consequently, the service has been halted for U.S. denizens.