💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Kraken To Launch A Bank To Support Struggling Cryptocurrency Firms

Published 06/03/2023, 19:04
Updated 06/03/2023, 20:11
© Reuters.  Kraken To Launch A Bank To Support Struggling Cryptocurrency Firms

Benzinga - Cryptocurrency exchange Kraken is planning to launch its own bank to support struggling cryptocurrency firms that are having difficulty establishing connections with traditional banks.

The move comes amid the Securities and Exchange Commission (SEC) accusing Kraken of selling unregistered securities, resulting in the exchange ending its staking operations with retail investors and paying a $30 million fine.

Kraken's chief legal officer, Marco Santori, spoke with The Block about the plan to launch the bank and the challenges facing cryptocurrency firms in establishing banking relationships.

Also Read: Kraken To Launch A Bank To Support Struggling Cryptocurrency Firms

Santori assured that Kraken's banking relationship is secure and that it has relationships with various banks, but expressed concern about other companies not having the same access.

Kraken's ultimate goal is to provide support to cryptocurrency firms struggling to connect with banks, Santori said.

Recent issues with Silvergate Capital Corp (NYSE: SI) and the fall of FTX have added to the challenges faced by the cryptocurrency industry.

While Kraken's website has a dedicated "Bank" section, there is no specific launch date provided.

Read Next: Bitcoin Sees Fourth Week Of Outflows, With Investment Products At $844M

Photo: Piotr Swat via Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.