The mainstream adoption of crypto may soon be accelerated by the establishment of a pioneering bank dedicated to providing comprehensive deposit-taking, custody and fiduciary services for digital assets.
The Kraken crypto exchange has announced that the American state of Wyoming has approved its application to form the world’s first Special Purpose Depository Institution (SPDI), tentatively called Kraken Financial.
Headquartered in Cheyenne, Kraken Financial is the first digital asset company in US history to receive a bank charter recognized under federal and state law.
“From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Financial will enable Kraken clients in the US to bank seamlessly between digital assets and national currencies,” the company said in a statement.
David Kinitsky, CEO of Kraken Financial, added: “We’re thrilled to work in a state so aligned with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”
This new institution will be regulated in largely the same manner as other American banks. It will initially offer services to US residents only, but it aims to expand globally.
Marco Santori, Kraken’s chief legal officer, told Forbes, “It’s the natural evolution. Banks were created for people who wanted to hand over trust elements of their financial lives. They still serve that role today.
“As crypto grows to include more and more of the mainstream and starts to touch more and more of our everyday lives, we are going to see that phenomenon occur in crypto as well. There are going to be people who come into the tent who want the kind of services that banks can provide. We want to service those people. We want to be good stewards of their trust.”