Kraken Plans to Launch US Stock and ETF Trading Services by 2024
Summary:
Kraken, a renowned cryptocurrency exchange, is planning to extend its services to offer trading for US-based stocks and ETFs, as per Bloomberg. This expansion requires licenses from the Financial Industry Regulatory Authority and UK's financial regulators, already possessed by Kraken. The launch is targeted for 2024 under the division named Kraken Securities. This precedes Kraken's recent licensure in Spain and Ireland, amidst a lawsuit from the Australian Securities and Investments Commission. Additionally, in February, Kraken agreed to settle $30 million with the U.S Securities and Exchange Commission.
Kraken, a major cryptocurrency exchange, is reportedly intending to provide its users the ability to trade stocks based in the United States and exchange-traded funds (ETFs), according to reports from Bloomberg on September 27. Under the division named Kraken Securities, the exchange aims to launch these trading services in the United States and the United Kingdom by 2024. The planned expansion will necessitate licenses from the Financial Industry Regulatory Authority and financial regulatory bodies in the UK, which are apparently already held by Kraken.
This development comes slightly over one year after FTX US which is no longer operational, revealed its intentions to venture into a stock trading platform. While a number of applications, including Robinhood, offer the option to trade both in stocks and crypto, most USA-based crypto exchanges specifically concentrate on crypto and similar offerings.
Kraken declared on September 26 that it had secured licenses in Spain and Ireland to offer digital asset services. Concurrently, the exchange is contending with a lawsuit from the Australian Securities and Investments Commission alleging noncompliance with design and distribution requirements for one of its trading products.
Earlier this year, in February, the cryptocurrency platform reached an accord with the U.S Securities and Exchange Commission, agreeing to pay $30 million in returned profits, prejudgment interest, and civil fines while also discontinuing its staking services and programs for its U.S clients. An effort was made to reach Kraken for their comments but at the time of publication, no response was provided.
Published At
9/27/2023 8:12:43 PM
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