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Kraken, a popular cryptocurrency exchange, is reportedly planning to expand its services to include trading in U.S.-listed stocks and exchange-traded funds (ETFs). According to a report from Bloomberg News, the exchange is looking to launch this new offering in 2024.
Kraken intends to offer trading in the United States and the United Kingdom through its newly established division called Kraken Securities. The exchange has already obtained the necessary regulatory permits in the UK and has applied for a broker-dealer license with the Financial Industry Regulatory Authority (FINRA) in the U.S.
The move comes as crypto firms are trying to diversify their services and recover from a challenging period. Last year was particularly challenging for the crypto industry, with increased regulatory scrutiny and volatility in the market. As a result, many firms are exploring new avenues to expand their business and attract institutional investors.
The addition of U.S.-listed stocks and ETFs to Kraken’s platform would offer its users more options for diversifying their investment portfolio. It would also provide an opportunity for traditional stock investors to explore the cryptocurrency market through a trusted and regulated platform.
A spokesperson from Kraken commented on the matter, stating that the company is looking to enhance its offering and provide clients with secure and seamless access to its full product suite. However, they did not provide any specific details about the reported plans to offer stock and ETF trading.
Kraken is not the only crypto exchange looking to expand its services beyond cryptocurrencies. Several other exchanges are also exploring options to offer traditional financial instruments like stocks and ETFs. Additionally, some crypto firms are actively seeking approval from the U.S. Securities and Exchange Commission (SEC) for a spot bitcoin ETF, which would allow investors to gain exposure to bitcoin without directly owning the cryptocurrency.
In conclusion, Kraken’s reported plans to offer trading in U.S.-listed stocks and ETFs demonstrate the evolution and maturation of the cryptocurrency industry. By broadening its services, Kraken aims to attract a wider range of investors and provide them with more options to diversify their investment portfolios. While it remains to be seen how successful this new venture will be, it showcases the growing interest and demand for cryptocurrencies and traditional financial instruments in the market.