Kraken, a renowned cryptocurrency exchange, is planning to expand its services to include trading in U.S.-listed stocks and exchange-traded funds (ETFs). This move marks a significant convergence of the digital and traditional financial markets, potentially reshaping how investors buy and sell stocks.
The U.S.-based exchange is targeting to launch its new services in the U.S. and the United Kingdom in 2024 through a new division called Kraken Securities.
The move to include more than just cryptocurrencies in its offerings requires permission from the Financial Industry Regulatory Authority and financial regulators in the U.K. Reports suggest that Kraken is already in possession of these required licenses.
Kraken Exchange Takes a Step Towards the Future
While the company spokesperson did not confirm or deny the reports, they mentioned that Kraken is looking to broaden and enhance its offerings so clients continue to have secure and seamless access to Kraken’s full product suite. This move comes as crypto firms are trying to expand their services after a challenging year for the sector.
Several crypto firms are also trying to get approval from the SEC for a spot bitcoin exchange-traded fund. If successful, this could further bridge the gap between traditional finance and the crypto world.
This reported move by Kraken comes roughly a year after FTX US — now defunct — announced plans to launch a stock trading platform. Apps like Robinhood have already incorporated both stock and cryptocurrency trading services into their platforms. However, the majority of digital asset exchanges based in the U.S. primarily focus on cryptocurrency and related services.
Kraken recently made headlines with its announcement on September 26. The company revealed that it has secured licenses in Spain and Ireland, paving the way for it to offer its digital asset services in these countries. However, it’s not all smooth sailing for Kraken. The Australian Securities and Investments Commission has initiated a civil lawsuit against the company.
Kraken’s bold step signifies a significant convergence of the digital and traditional financial markets, potentially reshaping how investors buy and sell stocks. As the lines between traditional finance and crypto continue to blur, it will be interesting to see how this impacts the broader financial landscape.