Kraken Is on Track to Create the Bank of the Future Based on Bitcoin

Kraken will have the heavy responsibility of writing history.

The announcement made by Kraken on September 16, 2020, went somewhat unnoticed outside the small world of cryptocurrency. However, the announcement made by the Kraken exchange platform is significant.

Kraken has just announced that it has received approval from the State of Wyoming to build the first crypto bank in the United States.

Located in Cheyenne, Wyoming, Kraken Financial will provide Kraken customers in the United States with the same banking experience between digital assets and fiat currencies such as the U.S. dollar.

The key here is to note that Kraken Financial will be able to offer the same services as any other bank in the United States: “deposits, operate payment systems, and, of course, custody crypto for individuals and businesses and even some regulated entities”.

The only exception here is that Kraken Financial will not be allowed to participate in fractional reserve lending. Kraken’s Chief Legal Officer Marco Santori explains very well why:

“Fractional reserves create risks that, in the US, trigger the Bank Holding Company Act and FDIC (Federal Deposit Insurance Corporation) supervision under the FDI Act.”

In its first year of existence, Kraken Financial hopes to be able to offer the following services to its clients:

  • Digital asset custody

  • Demand/deposit accounts (DDAs)

  • Wire transfer and funding services

In the following years, Kraken hopes to be able to offer additional services:

  • Enhanced digital asset custody offerings

  • Digital asset staking

  • Trust account and administration

For individual accounts, Kraken plans to offer the following services next:

  • A complete online and mobile banking suite of products

  • A debit card that clients can use to spend their crypto funds

Finally, as far as corporate clients are concerned, the following services are provided:

  • Account management services

  • Bank comfort letters

  • Deposit verifications

  • Proof of funds attestations

In a few years, this announcement made by Kraken in a rather unexpected way will probably be remembered as an important step in the progression of Bitcoin for mass adoption by the general public.

Thanks to Kraken Financial, Kraken will be able to offer a digital-native banking experience to its customers that will bridge the existing gap between digital assets and legacy assets.

A user will be able to receive his or her salary directly in Bitcoin.

But it would be surprising if Kraken tries to replicate the way traditional banks work. As the first crypto bank in the United States, Kraken will have the responsibility to lead the way in providing better user experience.

Their customers could, for example, have access to a bank that operates permanently in the same way as the Bitcoin network.

Just imagine the huge difference that Kraken Financial would make by offering its services 24 hours a day, 7 days a week, 365 days a year to its customers. A true revolution that traditional banks will never be able to match.

Users could have a single savings account and a single checking account accepting fiat currencies and Bitcoin. In the same way, a single bank account could be sufficient to hold stocks, bonds, fiat, and commodities.

As you can see, the possibilities are immense, and Kraken will have the heavy responsibility of making history by being the first crypto bank in the United States.

Given what Kraken has already shown with its trading platform over the last few years, we can trust the company to go beyond a simple crypto bank by offering something new and unprecedented.

At the heart of this ambitious project to redefine the banking experience to adapt it to what native digital customers expect in 2020, we will find Bitcoin, whose adoption will be boosted a little more thanks to this initiative.

We are only at the beginning of something big, and it will be exciting to follow in the months and years to come.

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This story was first published on Voice.