Kraken is undeterred by the challenging regulatory environment and the closure of its on-chain staking services, as it forges ahead with plans to launch its own bank.
During an interview with The Block’s Frank Chaparro on The Scoop podcast, Marco Santori, Kraken’s Chief Legal Officer, expressed confidence that Kraken Bank is well-positioned to launch soon. As a playful gesture, Santori joked about ordering thousands of pens with little ball chains attached to Wall Street banks’ desks, all adorned with Kraken’s logo.
Kraken’s entry into the banking sector comes amidst a turbulent period for the cryptocurrency industry. The collapse of FTX and various enforcement actions have contributed to regulatory uncertainty. Despite this, Kraken’s Chief Legal Officer, Marco Santori, did not delve into specifics regarding the recent USD 30 million settlement with the US Securities and Exchange Commission (SEC), except to note that staking had constituted a relatively small proportion of Kraken’s revenue.
He also added that the SEC’s move would push American clients who want staking services offshore to far riskier exchanges.
Kraken’s decision to launch its own bank reflects its commitment to becoming a major player in the crypto space. However, the regulatory environment remains a challenge for the company, with SEC Chair Gary Gensler warning that the Kraken settlement should “put everyone on notice in this marketplace”.
Nevertheless, Santori remains confident that Kraken Bank will soon become a major player in the crypto banking sector.