- Kraken has launched a qualified custodian service called Kraken Institutional for institutions in Wyoming under its state banking charter. It provides secure storage and transparency.
- Wyoming has taken steps to attract crypto businesses with crypto-friendly regulations. Kraken is the first exchange to get a state banking charter there.
- Kraken’s new institutional custody service caters to growing institutional demand. It represents a bridge between traditional finance and crypto as adoption accelerates.
Crypto exchange Kraken has launched Kraken Institutional, a qualified custodian service for institutions in Wyoming. Kraken Institutional operates under the exchange’s state-chartered banking license in Wyoming, attained back in 2020.
Kraken’s Custody Service
Kraken is one of the first crypto exchanges to provide custody targeted specifically at institutional clients. The service will provide secure storage of assets with an independent audit of holdings.
Kraken claims the new service will provide better security and transparency compared to traditional custodians. Clients will be able to self-manage their accounts and integrate them with other systems.
The State of Wyoming
Wyoming has taken steps to attract crypto businesses and become crypto-friendly. In 2019, Wyoming introduced a bill recognizing utility tokens as a new asset class.
In 2020, Kraken became the first crypto exchange to receive a state banking charter in Wyoming. The state has passed over a dozen blockchain and crypto-related laws in recent years.
Wyoming’s crypto-friendly regulations have made it an attractive destination for crypto businesses. Kraken opening its institutional custody service in the state is a testament to this.
The Future
As crypto continues to gain mainstream traction, demand for institutional-grade services like custody is growing. Kraken’s new qualified custodian service caters to this burgeoning market.
Other major players like Anchorage, BitGo, and Coinbase also offer crypto custody services. More competition in this space benefits institutional investors by giving them more secure storage options tailored to crypto assets.
The launch of Kraken’s custody service is a milestone for both the exchange and the state of Wyoming. It represents a bridge between the traditional finance world and the frontier of crypto – a trend that is only accelerating.
