Kraken Crypto Exchange Announces Launch of New Crypto Bank in US Amid Regulatory Challenges

US-based cryptocurrency exchange Kraken is moving forward with its plans to launch a new Wyoming-based crypto bank, despite a recent setback.

The US Securities and Exchange Commission (SEC) recently banned Kraken’s staking service, but the exchange has confirmed that Kraken Bank is still on track to launch.

Kraken Support responded to a Twitter user’s inquiry, stating that the bank is not open yet but is on its way. The offering will initially be available to existing Kraken clients in the USA, with the potential for international expansion in the future.

Kraken officially announced its plans to open a crypto bank, designated as a special purpose depository institution (SPDI), in 2020. The exchange received a state banking charter from Wyoming, making it the first-ever crypto company to be awarded such a charter.

According to Kraken, SPDIs are banks with forward-facing regulatory frameworks, and the bank plans to offer a range of services, including digital assets custody, staking services, funding services, wire transfers, debit cards, enhanced crypto custody offerings, and a mobile banking app.

Kraken Bank CEO David Kinitsky stated that he is thrilled to work in a state that is aligned with the bank’s philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.