US crypto firm gets banking license

Reported by: |Updated: September 18, 2020

KRAKENUS cryptocurrency trading platform Kraken has received a banking license to operate as a bank in the U.S. The company has outlined its plans to offer a number of cryptocurrency-focused financial services locally and globally. It said the state of Wyoming has approved its application to form the world’s first Special Purpose Depository Institution (SPDI), tentatively called Kraken Financial, which will be the first digital asset company in U.S. history to receive a bank charter recognized under federal and state law. It also said it will offer comprehensive deposit-taking, custody and fiduciary services for digital assets. As a bank, Wyoming law requires Kraken Financial to maintain 100% reserves of its deposits of fiat currency at all times. It will be regulated by the Wyoming Division of Banking and will have a permanent physical presence in Cheyenne with back-office teams and functions. It will operate as an online and mobile-first banking model.