In line with a recent official report, the Wyoming Banking Board was voted to approve the San Francisco-based Kraken crypto exchange application for an SPDI [special purpose depository institution] charter.
Kraken is now the primary SPDI bank in Wyoming. Consistent with the Wyoming Division of Banking’s general counsel, Chris Land, Kraken is the primary newly chartered bank within the state since 2006.
In line with the managing director & the CEO of the newly formed Kraken Financial ‘David Kinitsky’:
“By becoming a bank we get direct access to federal payments infrastructure, and we can now more seamlessly integrate banking and funding options for patrons.”
In line with an official letter from the United States Office of the Comptroller of the currency giving national banks the go-ahead to custody crypto assets, the Division of Banking also announced that it’s been working with Promontory Financial Group, a prominent Washington, D.C.-based consulting company consisting of lawyers & former government regulators. Also earlier in October, the division alongside Promontory will publish the primary manual for banks regarding procedures and policies for handling digital assets, Land added.
Additionally to more products, Kraken Financial will give Kraken the power to work in additional jurisdictions, Kinitsky added. As a state-chartered bank, Kraken now features a regulatory passport into other states without having to affect a patchwork state-by-state compliance plan.
Kraken has been silent about its application so far. The primary hint that the exchange was curious about the Wyoming charter was in December when it opened an edge for the work that Kinitsky has now.
“We would expect to provide a number of latest products as we get established,” Kinitsky added. “Those will range from things like qualified custody for institutions, virtual-asset debit cards, and savings accounts all the way to new sorts of asset classes. We will engage with securities & commodities as well as things like that as a bank.”
Initially, Kraken Financial will operate with similar function as 3rd-party banking relationships that Kraken has already formed, Kinitsky added. Eventually, the subsidiary will become the United States user service provider, with Kraken affiliated services offered on the rear end.