Breaking: Kraken Launches Custody Service In New Diversification Play

Kraken, one of the leading cryptocurrency exchanges, has unveiled its Qualified Custody Solution tailored for the US market. As unveiled, Kraken Financial holds all reserve deposits, which makes it the most suitable service provider for Kraken Institutional to offer qualified custody. 

What the New Kraken Custody Solution Offers

With the increasing interest from institutional investors in the cryptocurrency space, the need for custody solutions has become paramount. Kraken’s Qualified Custody Solution addresses this demand by providing an infrastructure that meets the rigorous standards set by regulators in the United States.

Kraken Financial is responsible for managing Kraken Custody, a service that allows clients to store, manage, and transfer cryptocurrency assets. This service guarantees the safety and integrity of clients’ digital assets. The platform will offer multi-layered security protocols, advanced encryption techniques, and comprehensive insurance coverage to ensure the highest level of security.

By adhering to strict regulatory guidelines, Kraken aims to instill confidence in institutional investors and facilitate participation in the crypto market. In addition to enhancing security and regulatory compliance, Kraken’s custody solution also streamlines the process of managing digital assets for institutional investors. 

Through its integration with existing systems, the platform simplifies asset custody and administration, enabling clients to focus on their investment strategies with peace of mind.

Additionally, Kraken’s entry into the crypto custody space underscores the growing maturity of the cryptocurrency market. As institutional adoption rises, the need for reliable infrastructure and service providers becomes increasingly apparent. Kraken’s custody solution positions the exchange as as viable competitor to institutional investors looking to navigate the complexities of the crypto landscape.

Kraken Entering the EU Market

It is noteworthy that Kraken has been eyeing the Dutch market for quite some time now. As such, the exchange successfully secured a Virtual Asset Service Provider (VASP) registration from the Dutch Central Bank (DNB) as part of its European expansion. The registration pushed the digital asset company to consider the acquisition of Netherlands-based cryptocurrency exchange Coin Meester B.V. (BCM).

Kraken’s push into the European market is driven by the presence of a robust regulatory framework in the region, one of the factors missing in the United States. Last year, the European Union rolled out its Markets in Crypto-Assets (MiCA) regulatory framework. Aside from the Netherlands, Kraken holds different licenses from Ireland, Spain, and Italy.