Kraken Adds FedWire and SWIFT Funding Options to US Customers

Cryptocurrency exchange Kraken has added domestic (FedWire) and international (SWIFT) USD funding options through Silvergate Bank to give its US clients more choice as they manage their assets.

The deposit and withdrawal handling fees per wire for FedWire & SWIFT transactions are $25 and $40, respectively. The minimum deposit or withdrawal amount is $100, while the maximum amount depends on limits applied to the customer’s account.

Except for Texas, Washington and New York, Kraken can conduct this business through the new payment options in other US states.

The move is the latest in Kraken’s efforts to onboard more banking partners, building on their most recent integrations with Bank Frick, Signature and MVB Bank. The San Francisco-headquartered firm now offers its clients ten different options to make USD deposits and withdrawals, including five US-only options and five that are available worldwide.

Additionally, the new integration expands the current collaboration between the crypto-friendly lender and Kraken which has already joined the Silvergate Exchange Network (SEN) to enables its clients to deposit and withdraw US dollars from Silvergate accounts with no fees.

Kraken joins crypto exchanges, miners, and custodians who benefit from the service that also offers leveraged trading options. Silvergate already counts major crypto exchanges like Coinbase as clients.

The product, which was first launched in 2017, allows the bank’s customers to obtain US dollar loans collateralized by their bitcoin holdings at some crypto exchanges that Silvergate is currently serving.

SEN Network Handled Transfers Worth $17.4 Billion in Q1

SEN Leverage uses Silvergate Exchange Network (SEN) to fund loans and process repayments in real-time 24 hours per day, seven days per week.

Silvergate, which is trading under the ticker (NYSE: $ SI), registered a first-quarter increase in the number of transactions handled by its SEN Network, which rose to 31,405 compared to 14,400 transactions in the previous quarter. This figure is also four times higher than the 7,097 transactions set back in the first quarter of 2019.

In terms of value, the global Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term platform, which now supports cash purchases of cryptocurrencies through wire transfers, experienced growth in excess of 90 percent. Specifically, the SEN handled $17.4 billion of US dollar transfers in the first quarter, compared to $9.6 billion in the fourth quarter of 2019, and $4.1 billion in the first quarter of 2019.

In the absence of major institutional attention, Silvergate Bank provided tailored financial services to businesses that are directly or indirectly dealing with cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-related services.

Interestingly, Kraken has recently secured approval from a state regulator in the US to launch a crypto bank under an SPDI charter. An SPDI bank charter permits Kraken to operate an independent bank that will reduce reliance on third-party financial institutions and allows the exchange to provide deposit-taking, custody and fiduciary services for digital assets.