Kraken’s CLO Speaks About Plans to Launch its Own Bank

Vignesh Karunanidhi
Kraken Expands European Footprint: Secures Regulatory Approvals in Ireland, Spain
Source: Outlook India

After accusations from the Securities and Exchange Commission (SEC) of selling unregistered securities, cryptocurrency exchange Kraken consented to end its staking operations with retail investors. Moreover, a $30 million fine was paid.

Not only has the SEC’s decision enraged the cryptocurrency community, but also investors and politicians. The majority of the pressure is being placed on SEC Chair Gary Gensler.

Also read: Binance Considered Tapping Gensler’s Expertise as an Adviser: Report

Kraken’s chief legal officer, Marco Santori, recently sat down with The Block, where he spoke about various things, including the banks becoming hesitant to accept cryptocurrency firms as new clients. Santori also expressed the exchange’s plan to launch its own bank.

Kraken CLO says banks are shying away from accepting cryptocurrency firms as clients

Santori also mentioned in the podcast that Kraken’s banking relationship is secure and that they have relationships with various banks. He also mentioned that Kraken is in pretty good shape; however, he mentioned his worries about other companies not having the same access.

The ultimate goal of Kraken’s plan to launch a bank is to support other cryptocurrency firms that are struggling to establish a connection with banks. The recent issues with Silvergate also added to the trouble, along with the fall of FTX.

Also read: Ripple v. SEC: March 5, 2023 Update

Source: Kraken

Even though Kraken has a dedicated “Bank” section on its website, there is no exact date provided for when users can expect the launch. However, the website mentioned that the planned launch could be expected in 2022.