cryptoglobe.com
On 20 March, Kraken Institutional announced the rollout of its qualified custody solution, Kraken Custody, via Kraken Financial, signalling a significant enhancement in security and services for institutional clients in the cryptocurrency sector. As a part of one of the most secure and longest-standing cryptocurrency exchanges, Kraken Financial, is now authorized to offer digital asset custody and deposit accounts specifically designed for institutional investors.
Kraken Financial is creating a link between conventional banking and the digital asset world. It aims to offer the familiar services of a traditional bank, coupled with access to the digital asset ecosystem, advancing Kraken’s goal to boost worldwide digital asset adoption for universal financial freedom and inclusion.
Kraken Financial operates as a Special Purpose Depository Institution (SPDI), officially chartered and based in Wyoming, USA. According to the regulations of Wyoming, an SPDI functions as a banking institution that accepts deposits and engages in additional banking-related activities, such as custody, asset servicing, asset management, and various other financial services.
As a fully owned subsidiary of Payward, Inc. (operating as Kraken), Kraken Financial is governed by a board of directors and a senior management team that brings together expertise in both digital assets and traditional financial sectors.
Tim Ogilvie, the Head of Kraken Institutional, emphasized the importance of custody solutions in the institutional cryptocurrency landscape, especially following the success of bitcoin ETFs. With over 12 years of experience in safeguarding client assets, Kraken views the introduction of a qualified custody solution as a pivotal component of its comprehensive institutional offerings.
According to the press release, Kraken Financial operates as an segregated entity, ensuring that funds and assets are securely stored away from the exchange, with the guarantee of availability for withdrawal at any time. This arrangement offers a familiar structure for clients from traditional finance sectors making the transition to digital assets, providing the expected level of safety and regulatory compliance.
The custody service, housed within Kraken Financial, aims to offer a seamless experience for managing and transferring cryptocurrency assets through a single interface, backed by state-of-the-art security protocols developed by Kraken’s leading cybersecurity team. Kraken Custody’s integration with the broader Kraken product suite allows for a smooth transition for clients into the dynamic world of crypto trading while maintaining the integrity of segregated accounts.
Trevor Rutar, CEO of Kraken Financial, highlighted Wyoming’s regulatory framework as a cornerstone for offering qualified custody services that meet the stringent requirements of institutional investors. Under the supervision of the Wyoming Division of Banking, Kraken Financial is subject to comprehensive security and operational audits, positioning it as a prime custodian in the crypto asset space.
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