IMPORTANT POINTS:
- Kraken plans to enter the stock and ETF market in the United States and the United Kingdom beginning in 2024.
- The firm will look to offer stock and ETF trading by way of a brand new division referred to as Kraken Securities.
- Kraken will compete with different gamers similar to Robinhood and Public.com in the commission-free stock market.
Kraken, one of many main cryptocurrency exchanges, has introduced its plans to enter the stock and ETF market in the United States and the United Kingdom beginning in 2024. This marks the primary time that Kraken has ventured past the cryptocurrency house. after greater than a decade of operations targeted on this sector.
The firm plans to offer stock and ETF trading in the US and UK by way of a brand new division referred to as Kraken Securities. To help this initiative, Kraken has utilized for broker-dealer licenses in the US with the Financial Industry Regulatory Authority (FINRA), whereas regulatory licenses and permits in the UK are already in place.
Eligible Kraken clients will be capable to activate the stock and ETF trading service as soon as it’s operational. Additionally, Kraken plans to launch a professional custodian designed to serve institutional purchasers in the close to future. This custodian will function independently and has already utilized for approval from the state of Wyoming.
Kraken will be part of different market gamers, similar to Robinhood Markets Inc. and Public.com, that already offer commission-free stock trading companies. Despite declining trading volumes in the cryptocurrency market, Kraken has maintained a stable 3.5% share of world cryptocurrency trading, its highest stage since 2018.
This announcement from Kraken comes after a sequence of constructive developments for the corporate in Europe, the place it has obtained regulatory approvals to develop its cryptocurrency and fiat foreign money companies. The firm has additionally obtained an Electronic Money Institution (EMI) license from the Central Bank of Ireland and has registered as a Virtual Asset Service Provider (VASP) in Spain.
However, it is very important observe that Kraken just lately reached a $30 million settlement with the United States Securities and Exchange Commission (SEC) for failing to register its cryptocurrency staking service as a safety providing. As a consequence, Kraken has stopped providing the staking service to US residents.
