Kraken, a prominent U.S. cryptocurrency exchange, is actively considering the expansion of its services to include the trading of stocks and exchange-traded funds (ETFs) in both the United States and the United Kingdom, as per a Bloomberg report citing an insider source. Should this initiative materialize, Kraken would become the first crypto exchange to venture beyond cryptocurrency assets, with plans indicating a potential launch of the service as early as 2024.
Notably, FTX’s U.S. division previously offered stock trading options, despite facing financial difficulties. In contrast, traditional trading platforms such as Robinhood and Wealthsimple have already embraced cryptocurrency token trading.
Kraken intends to implement this new service through its newly established entity, Kraken Securities. The division has already obtained the requisite regulatory authorizations in the U.K. but awaits approval in the United States, according to the anonymous source cited by Bloomberg. When approached for a comment, Kraken remained non-committal, stating that while they couldn’t confirm or deny speculations, they are constantly exploring ways to support the global adoption of cryptocurrencies and expand their offerings to ensure clients have secure access to their full suite of products.
Kraken’s pursuit of international markets has intensified recently in response to increased regulatory scrutiny in the United States. As part of this expansion strategy, Kraken was forced to cease its crypto staking service and settle charges brought forth by the Securities and Exchange Commission (SEC) by paying a $30 million fine. In a recent development, the exchange also secured registration as a virtual asset service provider in Spain, enabling them to offer cryptocurrency exchange and custodial wallet services to Spanish residents.
