Williams Racing and Kraken, a popular crypto platform, announced a global partnership ahead of the Australian Grand Prix in Melbourne. This marks Kraken's first-ever official crypto and Web3 partner of the Formula 1 (F1) team.

Kraken and Williams Racing Announce Crypto Partnership

According to a press release published on Williams F1's official website, throughout the rest of the 2023 FIA Formula One World Championship season, Kraken's logo will be prominently displayed on the FW45 racing car halo and rear wing. Additionally, the branding will be featured on driver racing attire and team headwear.

In addition to the partnership agreement, the rear wing of FW45 will exhibit KrakenNFT digital art pieces owned by customers sourced from third-party NFT initiatives during specific Grand Prix events. Furthermore, Williams and Kraken will join forces to create exclusive limited-edition caps for certain Grands Prix occasions.

"Kraken's partnership with Williams Racing shows what is possible when you combine a great mission with excellence, innovation and breakthrough performance. These are both iconic brands that have stood the test of time. We're excited to engage with both Kraken's and Williams Racing's global communities, showcasing the power and life-changing impact of crypto and Web3," Mayur Gupta, the Chief Marketing Officer at Kraken, commented.

With a focus on engaging fans and the community, Kraken will take part in various Williams Racing fan zone activities during the season. Simultaneously, the crypto exchange will develop content to inform and educate F1 fans about the objectives and importance of Web3 technology.

James Bower, the Commercial Director of Williams Racing, expressed his pride and excitement about the partnership with Kraken, highlighting that it unites two well-established and trusted brands from their respective industries.

"We're excited to get the partnership underway to offer our fans cutting-edge crypto and Web3 experiences, while also enabling Kraken to reach new institutional clients and businesses through our network and events," Bower summarized.

Brokers and Exchanges Bet on F1

The first FX/CFD company to bet on Formula One sponsorship was X-Trade Brokers (now XTB) more than ten years ago. Since then, many more retail brokers have decided to partner with teams of the popular racing series. In 2018, such a partnership with the McLaren F1 Team was established by FxPro, which was extended in 2021, while a year ago, the popular payments services provider, Nuvei, became a sponsor of the Mercedes team.

In addition, the cryptocurrency industry has experience in sponsoring sports and F1 teams. In 2021, Crypto.com announced that it has become a sponsor of the Aston Martin F1 Team, and in 2019 FuturoCoin joined as a partner of Aston Martin Red Bull Racing. Unfortunately, the latter turned out to be a scam promoted by the fraudulent company FutureNet. Roman Ziemianin, the pyramid's creator, was arrested in late 2022.

Positive News for Kraken after Tough Months

The news of a sponsorship deal signed with a Formula One team is the first upbeat note regarding Kraken after a year of cryptocurrency operational and regulatory problems.

In November, the exchange announced that it was cutting its global workforce by 30% in order to adapt to challenging market conditions. Less than a month later, it admitted that it was suspending operations in Japan due to the weak cryptocurrency market.

However, the real problems started after February 2023, when Kraken found itself under the sight of the US SEC in connection with a listing of unregistered securities. Finance Magnates reported that the exchange shut down Staking-as-a-Service and agreed to pay $30 million to settle with the market supervisor over its activities in the US.

Regulatory problems prompted news of a possible exchange conversion into a crypto bank. The idea was first presented in 2020 and has now resurfaced in the face of regulatory pressure.

In the wake of Silvergate Bank's downfall, Kraken has opted to discontinue ACH deposit and withdrawal services. Since 2019, Kraken has been among several crypto exchanges utilizing the Silvergate Exchange Network (SEN) for ACH transactions in the United States.