The cryptocurrency exchange Kraken has launched a custodial service for its institutional platform, Kraken Institutional.
Kraken Custody is the first product under our new institutional brand. Offered via Kraken Financial, our state-chartered bank that holds fiat deposits in full reserve, it is ideally suited to offer qualified custody solutions for US institutional clients.https://t.co/1TzDm00CBZ
— Kraken Exchange (@krakenfx) March 20, 2024
Kraken Custody will provide digital asset storage services and create deposit accounts for organizations and companies in the United States.
The platform will allow service clients to manage portfolios and transfer funds within a “single interface, secured by the exchange’s latest security protocols.”
“Custody has always been an integral part of the institutional crypto industry, and the recent success of the Bitcoin ETF has only highlighted the need for a broader range of qualified custodians,” said Tim Ogilvie, head of Kraken Institutional.
Kraken Institutional operates as a special-purpose depository institution. The platform received the relevant license in 2020 in the crypto-friendly state of Wyoming.
Client deposits will be held in separate accounts of the independent company Kraken Finance, inaccessible to the parent firm.
In November 2023, the SEC accused Kraken of offering unregistered securities in the form of digital tokens on its platform.
In February 2024, the exchange filed a motion to dismiss the lawsuit, arguing that its consideration could set a “dangerous precedent” for the regulator’s authority.