One of the oldest and most trusted crypto exchanges is rolling out the red carpet for institutional investors. Kraken has formally launched qualified custody services through its regulated banking arm, Kraken Financial. This custody solution caters specifically to the needs of institutions, asset managers, hedge funds and high net-worth players seeking to enter the crypto asset class.
The custody launch follows the exchange’s unveiling of its Kraken Institutional in February. This overarching banner brings together existing offerings tailored for institutional clientele. The goal? Provide a one-stop shop with bespoke crypto solutions to meet the unique demands of these major market participants.
Based in crypto-friendly Wyoming, the exchange’s Financial arm holds all the necessary licenses to provide digital asset custody and deposit accounts for institutions. All deposits are held in full reserve, completely segregated from its operations. Funds can be withdrawn at any time, offering peace of mind akin to traditional finance.
Introducing Kraken Custody
Tim Ogilvie, the head of Kraken Institutional, sang the praises of their new custody solution. He said:
Custody has always been integral to the institutional crypto space and the recent success of the bitcoin ETFs has only underscored the need for a broader range of qualified custodians. The release of Kraken Custody is well-timed to provide the market with an alternative via a secure and trusted provider.
The custody rollout allows the exchange to fill a void in the market. Institutional investors transitioning from traditional finance can access custody through a familiar, regulated structure. Yet they get the benefits of a crypto-native service from an established, trusted provider. The exchange’s state-chartered bank status means rigorous security and operational checks apply.
CEO Trevor Rutar, underscored how Wyoming’s clear regulations enable them to offer custody fully compliant with institutional requirements. Under the watchful eye of state banking regulators, Kraken Financial will face stringent security and operational scrutiny befitting a qualified crypto custodian.
Rutar highlights the exchange’s decade-plus track record. Their responsive client service, trusted brand reputation, and seamless access to crypto assets position Kraken Custody to thrive, with the mission to provide secure and frictionless custody in line with the high standards institutions expect.
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