Kraken Will Provide US ETF Trading Services And Shares

Kraken crypto exchange. (Photo; Doc. Bitserver)

JAKARTA - Crypto exchange Kraken is reportedly planning to start offering Exchange-Trad Fund (ETF) trading services and US-listed shares. According to a Bloomberg report on September 27, the exchange plans to launch its services in the United States and Britain by 2024.

This trade service will be managed by a division called Kraken Securities and will make Kraken the first crypto exchange to dive into non-crypto investment. To move into the crypto world, this US-based exchange will require a broker-dealer license from the US Financial Industry Regulatory Authority (FISA), which has reportedly been submitted.

According to an anonymous source quoted in the report, Kraken already has all the licenses needed to meet UK financial regulators. This news comes about a year after the now-unoperating FTX US announced its plans to launch a stock trading platform.

Kraken's move into conventional finance will put him in direct competition with US-based trading platform Robinhood, which offers traditional stock trading and crypto choice.

"Kraken has always explored how to support global adoption of crypto. While we cannot comment on rumors or speculation, we are looking for ways to expand and increase our offerings so that clients continue to have secure and smooth access to all Kraken product packages," Kraken wrote as quoted by CoinDesk.

Kraken has faced rising regulatory pressure in the US and recently had to shut down crypto staking services to US clients and pay a fine of 30 million US dollars (Rp464 billion) to settle a lawsuit from the Securities and Exchange Commission (SEC).

Since then, the exchange is looking for ways to expand its operations outside the United States. Kraken recently obtained permission from local financial authorities as a provider of virtual assets in Spain that would allow it to offer crypto trading services and custodial wallets to residents of the country.

At the same time, Kraken is also facing civil demands from the Australian Securities and Investments Commission (ASIC) on its alleged non-compliance in setting a target market before offering its margin trading products to Australian customers.