25.9.2020 16:45 GMT+2
Category: NEWS

Bridge between crypto and traditional finance

Kraken described the bank as a bridge between “cryptocurrencies” and traditional economic systems.

State of Wyoming has great news, it has approved Kraken’s application to form the world’s first Special Purpose Depository Institution (SPDI), called Kraken Financial. The New future in the bank system. Kraken is the world’s first bank dedicated to handling digital assets. Opening in Wyoming with state’s approval an application to deliver a “Special Purpose Depository Institution.”

David Kinitsky, CEO of Kraken Financial, stated the following:

“Kraken’s mission has always been to promote the adoption of digital assets, in order to enable more individual financial freedom in the world.
This is a key tool on that path, because it allows us to seamlessly integrate the traditional financial system with the digital asset ecosystem”

As a start Kraken is planning to stay focus on the U.S company platform. With the vision to collaborate with other global institutions in the near future.

According to David Kinitsky:

“Down the line, we would look at the other bank institutions and corporations, because we are a digital asset native company. We have first-hand knowledge of the type of risk that banks go through, in order to make the proper judgment calls on when they are banking with the costumers."

Kraken is fortunate to have a “slave” of top-tier third banking providers. And it is a competitive advantage, since not all companies are in the same position. Even though for them it is a great advantage to have direct access to the federal payment system. Facilitating Kraken to integrate it into the product without having to rely in other sort of third-party services.

The goals in the future for Kraken Financial:

1. Kraken’s vision is to become the world’s trusted bridge between the crypto economy of the future and today’s existing financial ecosystem.

2. Kraken Financial will start locally, but will soon operate globally.

3. In its first phase of operation, Kraken Financial will only offer accounts to U.S. residents.

4. Kraken Financial as a bank, is required by the Wyoming state of law to maintain 100% reserves of its deposits of fiat currency at all times. If every client were to demand withdrawals of their fiat at the same time, Kraken Financial would fulfill each withdrawal request immediately.

5. Kraken will offer the following crypto-focused services in their first year of operations:

• Digital asset custody

• Demand/deposit accounts (DDAs)

• Wire transfer and funding services.

Anticipate supporting additional services:

• Enhanced digital asset custody offerings

• Digital asset staking

• Trust account and administration

• Service for individual clients such as an account management service, bank comfort letters, deposit verification etc…

6. Customer service and support will be available 24/7 entire year.

7. Kraken is developing policies and procedures to ensure that it acts as a “Qualified Custodian” for investment professionals under applicable federal and state law. It will do so in full compliance with all laws and regulations.

8. New and existing clients will have the opportunity to apply for our traditional financial accounts at any time.

Kraken financial will enable paying bills and receiving salaries in cryptocurrency, allowing incorporating digital assets into investment and trading portfolios. Kraken clients in the U.S. will allow seamlessly banking between digital assets and national currencies.

In Slovakia there is a very similar type of innovator Kelta.com. It is the first and unique player in the field of cryptocurrency and the blockchain world. Kelta is based in Slovakia, in the absolute center of the Europe. Celta plans to build innovative projects and breaks into the whole world.

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