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Kraken Expands into U.S. and U.K. Equity and ETF Markets: A Tactical Move Beyond Cryptocurrency
After establishing a strong presence in the European cryptocurrency markets, Kraken is now focusing on the stock and ETF sectors in the U.S. and U.K. Notably, this represents a new direction for the platform, which has been dedicated to cryptocurrency for 12 successful years.
U.S. and U.K. Markets: Kraken’s Next Frontier
Kraken announced its plans to begin trading U.S.-listed stocks and ETFs by 2024. Furthermore, according to reliable sources, Bloomberg disclosed that this trading will be facilitated through “Kraken Securities,” a newly created division. While the necessary regulatory approvals in the U.K. are in place, Kraken is currently awaiting broker-dealer licenses in the U.S., having submitted applications to the Financial Industry Regulatory Authority. Thus, once operational, eligible Kraken users will benefit from a unified dashboard that will display crypto, stocks, and ETFs under a single balance.
Additionally, this week marks another advancement for Kraken with its announcement to launch a qualified custodian for institutional clients. This entity will operate separately from Kraken, and approval from Wyoming’s authorities is anticipated.
Competition and Market Dynamics
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With this initiative, Kraken is set to compete with major players such as Robinhood Markets Inc and Public.com, both of which are already making an impact with their zero-commission services. Moreover, while Public.com has a presence in the U.K., Robinhood is expected to enter the U.K. market later this year.
Kraken’s strength is evident despite experiencing a decline in its trading volumes. It holds a notable 3.5% share of the global spot trading market, its highest since 2018, as reported by Bloomberg citing CCData.
Beyond the Headlines
In related news, Kraken is enjoying the benefits of positive developments. These include new regulatory approvals aimed at enhancing its European presence for fiat and crypto services. This encompasses the esteemed E-Money Institution (EMI) license from Ireland’s Central Bank and the designation of a Virtual Asset Service Provider (VASP) in Spain.
However, challenges remain. Kraken recently agreed to pay $30 million to settle with the U.S. SEC for failing to register its crypto-staking service as a security offering. As a result, this service has been suspended for U.S. users.
The post Kraken Ventures into U.S. and U.K. Stock and ETF Markets: A Strategic Leap Beyond Crypto appeared first on BitcoinWorld.
