On Thursday, crypto exchange Kraken launched a peer-to-peer payments app, enabling users to send and receive funds in both cryptocurrencies and fiat currencies across more than a hundred countries.
This move aims to broaden Kraken’s services beyond its core digital asset trading operations, positioning the firm to compete directly with players like PayPal, Venmo, and Block’s CashApp.
Kraken Plans Physical And Virtual Cards
The newly introduced app, named Krak, offers users a dedicated spend account and the ability to instantly send and request payments in 300 different assets, which includes various cryptocurrencies and local currencies.
Unlike traditional cash transfers, which often rely on external banking systems, Kraken will utilize its own internal infrastructure for these transactions, aiming to enhance efficiency and speed.
In an interview with Reuters, Arjun Sethi, co-CEO of Kraken, emphasized the company’s ability to facilitate cross-border transactions. “We’re able to move money across borders right off the bat, because that’s what we do from a trading perspective,” he noted.
Sethi highlighted that Kraken has spent over a decade building a “robust system” to comply with money transmitter licenses across various jurisdictions. He pointed out that customers are eager for new options for managing their money, prompting Kraken to expand its offerings.
Looking ahead, Kraken has ambitious plans for Krak, with future developments including the introduction of physical and virtual cards, as well as advanced services like pay-in-advance loans.
MiCA License Secured
This expansion follows another significant announcement from the exchange, which recently secured a license under the European Union’s Markets in Crypto-Assets Regulation (MiCA) from the Central Bank of Ireland (CBI).
Sethi remarked on the importance of this licensing achievement, stating, “Securing a license from the Central Bank of Ireland isn’t just about compliance; it’s a powerful signal of Kraken’s commitment to expanding the crypto ecosystem through responsible innovation.”
The executive noted that being the first global crypto platform to receive authorization from the CBI underscores Kraken’s dedication to building for the long term. “Trust is the most valuable currency in crypto, and it’s something you earn,” he added.
Kraken’s regulatory progress is noteworthy, as the exchange already holds Virtual Asset Service Provider (VASP) registrations in key European countries, including Ireland, Belgium, France, Italy, the Netherlands, Poland, and Spain.
With a strong foundation in euro-denominated trading, Kraken introduced the first BTC/EUR trading pair in 2013 and has since become one of the most-soughted platform for euro trading.
With the MiCA license now secured, alongside existing MiFID and EMI licenses, the exchange is reportedly preparing to extend its regulated offerings to millions of clients throughout the EU.
Featured image from DALL-E, chart from TradingView.com