Quick take:
- The Crypto exchange of Kraken has received a bank charter from the State of Wyoming
- The exchange becomes the first digital asset company in US history to receive a bank charter
- Kraken will form the world’s first Special Purpose Depository Institution (SPDI) known as Kraken Financial
- Kraken Financial will enable US customers to bank seamlessly between digital assets and national currencies
Moments ago, the crypto exchange of Kraken announced that it had received a bank charter from the US State of Wyoming. What this means is that Kraken becomes the first digital asset company in the USA to receive a bank charter that is recognized under state and federal law.
Through the bank charter, Wyoming will allow Kraken to form the world’s first Special Purpose Depository Institution (SPDI) aptly named ‘Kraken Financial’, which will be regulated like any other bank in the United States.
US Clients Can Bank Seamlessly Between Digital Assets and National Currencies
Kraken Financial will enable its US clients to bank seamlessly between digital assets and national currencies. This means that Kraken Financial’s customers will have all the traditional banking services for both fiat and digital assets. This will include the following:
- Payment of bills in crypto
- Receiving salaries in crypto
- Adding digital assets to their investment and trading portfolios
Wyoming is Very Crypto-Friendly
According to the CEO of Kraken Financial, David Kinitsky, the decision to apply for a bank charter in Wyoming was based on the state’s dedication to embracing technology and innovation.
We’re thrilled to work in a state so aligned with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.
His statements echo the words of the Founder and CEO of Avanti Bank and Trust, Caitlin Long, who has constantly pointed out the ease of doing digital-asset-based business in Wyoming. Following Kraken’s approval of the bank charter by the state of Wyoming, Ms. Long has expressed enthusiasm that Avanti Bank and Trust will be the next one in line as seen in the following tweets.
3/ I’ll be back w/ more analysis later. Next applicant in line for #Wyoming SPDI is @AvantiBT later this Fall (more are on the way). But today is @krakenfx's day. As a shareholder, I'm so happy for @jespow & Kraken team! Applications for this charter opened a yr ago–took longer
— Caitlin Long 🔑 (@CaitlinLong_) September 16, 2020