Lorenzo Stroe
Independent Analyst
According to an official announcement, Kraken, the US-based cryptocurrency exchange has just obtained approval to create America's first crypto bank.
1/ IT'S OFFICIAL!!! Welcome to #Wyoming, @krakenfx!
— Caitlin Long (@CaitlinLong_) September 16, 2020
+=
What a win-win for #crypto & Wyoming! As of **NOW** Kraken has a US bank charter—a 100% reserves-required, audit required (w/ #ProofOfReserves), custody via legal bailment, no #rehypothecation type of bank! pic.twitter.com/BO9CG8Jqoc
The tweet was re-tweeted by Kraken's official account and states that Wyoming's Banking Board concluded its vote and it was unanimous in favor of Kraken. While Kraken is the first exchange to be granted the approval, others are already waiting in line. The next applicant for Wyoming SPDI is AvantiBT.
*BREAKING*@Krakenfx just won approval to create America’s first crypto bank.
— Marco Santori (@msantoriESQ) September 16, 2020
World, please meet Kraken Financial. Kraken Financial, world.
Wait, a what? Kraken is a BANK?! How did this even happen?!
Allow me to threadeth.
Kraken already posted an official blog post verifying the information. David Kinitsky, CEO of Kraken Financial said:
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.
Kraken applied to become an SPDI charter years ago and will start to operate locally but eventually globally. The SPDI bank is still a custody bank but for digital assets like cryptocurrencies.
New and existing clients will have the opportunity to apply for our traditional financial accounts. Upon completing the onboarding procedures, they will be able to quickly and seamlessly fund their accounts on the exchange.
Moreso, for the first time, they will be able to take advantage of the seamlessness and ease of use that comes from the first all-in-one service provider that can offer and expertly manage sophisticated crypto-products.
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