Kraken, a leading cryptocurrency exchange, recently launched its first crypto offering for institutional investors. This move is part of the exchange’s expansion into providing digital asset services for larger participants. The offering includes licensed institutional custodial services supported by a Wyoming state banking license. This strategic move positions Kraken to compete with industry giants like Coinbase in the U.S. virtual asset market.

Tim Ogilvie, Head of Kraken Institutional, highlighted the growing demand for qualified crypto custody services, especially with the success of spot Bitcoin ETFs in the U.S. Recently, eight BTC ETF issuers selected Coinbase as their custodian for Bitcoin funds. Kraken’s latest offering, operating under the state-chartered bank Kraken Financial, was granted a special purpose depository institution permit by Wyoming regulators in 2020. This allows the firm to securely hold digital assets and manage deposit accounts for institutional clients on a full-reserve basis.

Kraken Custody, a separate solution from the exchange, provides remote segregation of funds and enables 24/7 withdrawals. CEO Trevor Rutar emphasized the company’s ability to meet institutional needs, thanks to Wyoming’s clear regulatory framework. With oversight from the Wyoming Division of Banking, Kraken Financial undergoes rigorous security and operational checks, making it an ideal custodian for institutional clients looking to enter the crypto asset space.

In addition to its U.S. presence, Kraken is expanding its footprint in European markets. The Dutch Central Bank recently granted a virtual asset service provider license to Kraken, founded by Jesse Powell and Thanh Luu in 2011. This expansion signifies Kraken’s commitment to providing secure and compliant cryptocurrency services on a global scale.

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