Kraken Ventures into Traditional Markets: Launching US-Listed Stocks Trading

Kraken, a prominent crypto exchange, is poised to introduce trading in US-listed stocks and exchange-traded funds (ETFs), Bloomberg report.

This development is part of Kraken’s efforts to broaden its offerings and grant clients seamless access to a comprehensive product suite. 

The exchange has set its sights on a 2024 launch for this new venture, initially targeting the United States and the United Kingdom.

Kraken’s stock trading endeavor will be led by a newly established division named Kraken Securities. To enable this expansion, the exchange has already secured essential regulatory permits in the UK and is actively pursuing a broker-dealer license from the US Financial Industry Regulatory Authority (FINRA).

A spokesperson from Kraken stated:

“Kraken is always exploring how it can power the global adoption of cryptocurrencies. While we can’t comment on rumors or speculation, we’re looking to broaden and enhance our offering so clients continue to have secure and seamless access to Kraken’s full product suite.”

However, this expansion into US-listed stocks and ETFs occurs against some regulatory hurdles. Earlier this year, Kraken faced charges from the Securities and Exchange Commission (SEC) for not registering its cryptocurrency staking service as a security offering, resulting in a $30 million settlement and discontinuation of the staking service for US residents.

Moreover, ongoing scrutiny by the Internal Revenue Service (IRS) required Kraken to provide certain user information, emphasizing the company’s commitment to safeguarding clients from potential risks like identity theft.

Kraken’s strategic move to include traditional stocks and ETFs in its offering is a significant step towards integrating traditional and digital finance. It positions Kraken to compete with established platforms like Robinhood and Public.com, which already provide trading services for both stocks and cryptocurrencies.

This expansion follows Kraken’s recent successful venture into the European market, securing an EU E-Money Institution (EMI) license and a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland and the Bank of Spain, respectively.

The cryptocurrency sector is undergoing rapid changes, with various firms striving to enhance their services and gain regulatory approval.

NB: Any Information provided is NOT FINANCIAL ADVICE. Do Your Research before making any Financial Decisions.