Home Business Crypto Exchange Kraken to Explore Stock Trading: Bloomberg

Crypto Exchange Kraken to Explore Stock Trading: Bloomberg

by Janine Lindsey

Kraken, one of the leading crypto exchanges in the United States, is reportedly considering expanding its offerings to include stocks and exchange-traded funds (ETFs) for trading in both the U.S. and the U.K. This move would make Kraken the first crypto exchange to venture into trading traditional financial assets. According to Bloomberg, Kraken intends to launch this service as early as 2024.

While several traditional trading platforms, such as Robinhood and Wealthsimple, already allow their users to trade certain cryptocurrencies, Kraken’s potential foray into stocks and ETFs represents a significant shift in focus for the exchange. This move could potentially open up new avenues for investors, who can benefit from trading both traditional financial instruments and cryptocurrencies on a single platform.

Kraken plans to establish this new venture through its division called Kraken Securities, which has already obtained the necessary regulatory permits in the U.K. However, approval in the U.S. is still pending. It remains to be seen how regulators will respond to Kraken’s plans to extend its trading offerings beyond the realm of cryptocurrencies.

When approached for comment, Kraken declined to address the potential launch of a stock trading platform but emphasized its commitment to expanding the adoption of cryptocurrencies globally. A spokesperson for Kraken stated, “We’re looking to broaden and enhance our offering so clients continue to have secure and seamless access to Kraken’s full product suite.”

This news comes at a time when Kraken is intensifying its efforts outside of the United States due to increased regulatory scrutiny in the country. The exchange recently faced significant challenges, including the closure of its crypto staking service and a $30 million fine to settle charges brought by the Securities and Exchange Commission (SEC).

It is clear that Kraken is actively seeking ways to diversify and strengthen its position in the evolving world of cryptocurrency trading. By exploring the incorporation of traditional financial assets like stocks and ETFs, Kraken aims to cater to the needs of a broader range of investors. As the crypto industry continues to mature, it will be interesting to observe how this potential expansion into traditional financial markets impacts Kraken’s business and the wider crypto landscape.

Note: This article includes contributions from Jenn Sanasie.

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