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Kraken Becomes the World’s First Crypto Exchange To Become a Bank in the US

The San Francisco-based cryptocurrency exchange Kraken has become the world’s first digital currency exchange to become a bank in the United States as it has succeeded in receiving regulatory approval from the Wyoming Banking Board. The green signal from the Wyoming Board confirms that Kraken is now the regulated cryptocurrency bank in the United States.

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Kraken Gets Bank Charter Approval

The cryptocurrency exchange Kraken has revealed the news in an announcement post published on Wednesday, September 16, 2020, saying that it has been granted with the banking charter in the United States by the Wyoming Banking Board which makes the major cryptocurrency firm the first exchange to receive a bank charter approval.

As per the official announcement, the cryptocurrency exchange filed an application for forming Special Purpose Depository Institution (SPDI). The Wyoming Banking Board gave the vote in the favor of the application and approved it giving the Kraken exchange permission to develop the world’s first regulated cryptocurrency bank known as Kraken Financial in the State of Wyoming in the US.

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While sharing his thoughts on receiving the United States banking charter, the Managing Director of the Kraken exchange and also the Chief Executive Officer (CEO) of Kraken Financial David Kinitsky said that they are really excited to work in the state of Wyoming. David Kinitsky stated:

“We’re thrilled to work in a state so aligned with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”

As the Kraken exchange has now become a US bank, Kinitsky said, it would help them have easy “access to federal payments infrastructure”.

Offering Users New Products

Furthermore, the newly introduced Kraken Financial’s CEO said that once they are fully established they may offer a range of new products to customers.

Kinitsky added:

“We would expect to offer a host of new products as we get established. Those will range from things like qualified custody for institutions, digital-asset debit cards and savings accounts all the way to new types of asset classes. We can engage with securities and commodities and things like that as a bank. So a lot more TBD there.”

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MubaShar Nawaz

MubaShar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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