IMPORTANT POINTS:
- Kraken plans to enter the stock and ETF market in the United States and the United Kingdom starting in 2024.
- The company will look to offer stock and ETF trading through a new division called Kraken Securities.
- Kraken will compete with other players such as Robinhood and Public.com in the commission-free stock market.
Kraken, one of the leading cryptocurrency exchanges, has announced its plans to enter the stock and ETF market in the United States and the United Kingdom starting in 2024. This marks the first time that Kraken has ventured beyond the cryptocurrency space. after more than a decade of operations focused on this sector.
The company plans to offer stock and ETF trading in the US and UK through a new division called Kraken Securities. To support this initiative, Kraken has applied for broker-dealer licenses in the US with the Financial Industry Regulatory Authority (FINRA), while regulatory licenses and permits in the UK are already in place.
Eligible Kraken customers will be able to activate the stock and ETF trading service once it is operational. Additionally, Kraken plans to launch a qualified custodian designed to serve institutional clients in the near future. This custodian will operate independently and has already applied for approval from the state of Wyoming.
Kraken will join other market players, such as Robinhood Markets Inc. and Public.com, that already offer commission-free stock trading services. Despite declining trading volumes in the cryptocurrency market, Kraken has maintained a solid 3.5% share of global cryptocurrency trading, its highest level since 2018.
This announcement from Kraken comes after a series of positive developments for the company in Europe, where it has obtained regulatory approvals to expand its cryptocurrency and fiat currency services. The company has also 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 important to note that Kraken recently reached a $30 million settlement with the United States Securities and Exchange Commission (SEC) for failing to register its cryptocurrency staking service as a security offering. As a result, Kraken has stopped offering the staking service to US residents.
