Kraken To Launch A Bank To Support Struggling Cryptocurrency Firms

Cryptocurrency exchange Kraken is planning to launch its own bank to support struggling cryptocurrency firms that are having difficulty establishing connections with traditional banks.

The move comes amid the Securities and Exchange Commission (SEC) accusing Kraken of selling unregistered securities, resulting in the exchange ending its staking operations with retail investors and paying a $30 million fine.

Kraken's chief legal officer, Marco Santori, spoke with The Block about the plan to launch the bank and the challenges facing cryptocurrency firms in establishing banking relationships.

Also Read: Kraken To Launch A Bank To Support Struggling Cryptocurrency Firms

Santori assured that Kraken's banking relationship is secure and that it has relationships with various banks, but expressed concern about other companies not having the same access.

Kraken's ultimate goal is to provide support to cryptocurrency firms struggling to connect with banks, Santori said.

Recent issues with Silvergate Capital Corp (NYSE: SI) and the fall of FTX have added to the challenges faced by the cryptocurrency industry.

While Kraken's website has a dedicated "Bank" section, there is no specific launch date provided.

Read Next: Bitcoin Sees Fourth Week Of Outflows, With Investment Products At $844M

Photo: Piotr Swat via Shutterstock