coinedition.com
Payward, the parent company of Kraken, is considering a wider banking approach beyond the U.S. The move could expand Kraken’s financial services beyond traditional cryptocurrency trading and custody.
The company already operates Kraken Financial, a Wyoming-chartered bank serving institutional clients. That structure provides regulated custody and deposit services while keeping customer assets separate.
Building Institutional Infrastructure
Kraken Financial recently launched qualified custody through Kraken Institutional. The offering targets institutions seeking regulated infrastructure for storing and managing digital assets.
Moreover, the custody platform connects with Kraken’s wider product ecosystem. Clients can therefore manage transfers and other crypto activities through a unified interface.
Additionally, Kraken designed the structure around full reserves and continuous access to customer deposits. That approach could appeal to financial firms entering digital assets cautiously.
Broader Financial Ambition
But perhaps, the move by Kraken into international banking is a bigger strategic shift. The company could use its regulated banking operations to continue its global institutional growth.
Notably, there has been a significant increase in demand for secure crypto custody as institutional adoption has risen. The rise of Bitcoin exchange-traded funds has also drawn qualified custodial institutions to the attention.