Kraken Grabs First Mover Advantage, Offers Trading Options Outside Crypto Assets

After capturing a strong position in European crypto markets recently, Kraken is now awaiting approvals for stock and ETF trading in the U.S. and U.K. markets.

What Happened? Kraken announced its plans to offer trading in U.S.-listed stocks and ETFs starting in 2024, the first time stepping outside its usual crypto zone after 12 years of operation.

Bloomberg reported, citing sources close to the matter, that Kraken will initially offer trading in the U.S. and U.K. through a new division named, Kraken Securities.

U.K. license and regulatory permits stand in place while U.S. broker-dealer licenses were applied for with the Financial Industry Regulatory Authority.

Eligible Kraken customers will be alerted to activate the trading service once it is made live. A portfolio of crypto, stocks and ETFs will be shown in a single balance.

Additionally, Kraken has planned the launch of a qualified custodian for institutional clients this week. The custodian will operate separately from Kraken and approval from the state of Wyoming is already applied.

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Kraken is set to compete with other players such as Robinhood Markets Inc HOOD and Public.com, which already offered zero-commission services. Public.com has a U.K. presence and Robinhood planned to launch in the country later this year. 

Despite a drop in trading volumes, Kraken stood strong with a 3.5% market share in global spot trading. It was the highest since 2018, Bloomberg reports as per CCData.

Read Now: Kraken Embraces PayPal For Pivotal Crypto Shift In Europe, UK

In Other Developments: The news came on the heels of positive developments for Kraken such as fresh regulatory approvals to grow its presence across Europe for fiat and crypto services, an E-Money Institution (EMI) license from the Central Bank of Ireland, and registration as a Virtual Asset Service Provider (VASP) in Spain.

Kraken recently closed a $30 million settlement with the U.S. SEC for failing to register its cryptocurrency staking service as a security offering. It has now stopped offering the staking service to U.S. residents.

Also Read: IRS Wins Big As Kraken Ordered To Hand Over User Data By Federal Court

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