Kraken Expands Services with New Custody Solution Targeting Institutions

Wednesday, 20/03/2024 | 14:09 GMT by Jared Kirui

This new service is offered under the banking division of the crypto exchange.

Kraken Custody facilitates the storage, management, and transfer of crypto assets.

The crypto exchange Kraken has unveiled a digital assets custody solution for institutional investors in the United States. This new service is offered under Kraken Financial, the state-chartered bank of the crypto exchange based in Wyoming.

Kraken Financial is authorized to provide digital asset custody and deposit accounts for institutional clients. The platform operates as a segregated entity to ensure funds are held separately from the exchange. Kraken Financial's custody offering, aptly named Kraken Custody, enables clients to store, manage, and transfer crypto assets.

Integrated Custody Solution

Tim Ogilvie, the Head of Kraken Institutional, mentioned: "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."

"Kraken has 12+ years of experience in safeguarding client assets, and a qualified custody solution is a core part of a full-service institutional offering. The release of Kraken Custody is well-timed to provide the market with an alternative via a secure and trusted provider."

Streamlining Institutional Crypto Services

Last month, Kraken introduced a dedicated platform for institutional clients, following the increased demand for its services by institutions after the approval of spot Bitcoin ETFs. Dubbed Kraken Institutional, this platform integrates various products and services to cater to the needs of institutional investors, asset managers, and hedge funds.

Kraken Institutional aims to provide institutions seamless access to the crypto asset class, offering dependable, scalable, and easily integrable solutions. The platform encompasses spot trading, over-the-counter trading, and staking services.

The approval of the first spot Bitcoin ETF by the Securities and Exchange Commission marked a significant milestone for Kraken. The exchange’s subsidiary, CF Benchmarks, experienced substantial engagement from firms seeking spot Bitcoin ETF pricing services, including major players like BlackRock and Franklin Templeton.