The move signals the company’s first efforts outside the crypto sector as strict regulations imposed by the US Securities and Exchange Commission (SEC) make it more difficult for crypto institutions to thrive.
Kraken says it plans to launch US-listed stocks and exchange-traded funds sometime in 2024. The effort marks the company’s first attempt at straying away from the crypto sector since its founding 12 years ago.
The company’s new division, Kraken Securities, will initially offer trading in the US and UK.
The company has already acquired all the necessary permits for trading its products in the UK. In the meantime, Kraken awaits approvals on permits in the US.
Kraken’s endeavor may prove risky as it enters a market populated by institutes that offer zero-commission trades, such as Robin Hood and Public.com. Kraken also plans on building brokerage services and launching a qualified custodian for institutional clients soon
Reports also indicate that the company has applied for approval for its new products with the state of Wyoming.
Customers will be able to see their portfolio of crypto, stocks, and ETFs presented as a single balance.
Kraken did not immediately respond to a request for comment.
The company, led by its new CEO Dave Ripely, slams Chase Bank, one of the biggest financial institutions in the US for announcing its decision to ban crypto transactions for UK customers.
A spokesman for Chase said “We’ve seen an increase in the number of crypto scams targeting UK consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account.”