Kraken’s Game-Changing Custody for Cryptocurrency

Safeguarding Your Assets: Explore Kraken’s Latest Custody Innovation

Kraken Institutional, the specialized brand that provides institutional investors with customized crypto solutions, has officially launched its qualified custody solution through Kraken Financial, its state-chartered bank. Kraken is one of the most secure and long-standing cryptocurrency exchanges.

Kraken Financial, which is headquartered in Wyoming, USA, is authorized to provide institutions with digital asset custody and deposit accounts. Kraken Financial is the natural service provider through which Kraken Institutional can offer qualified custody, as it holds all deposits in full-reserve in accordance with its charter.

Kraken Financial is a segregated entity, which means that funds and assets are held at a distance from Kraken and are accessible for withdrawal at all times. Kraken Financial provides a recognizable framework for clients who are transitioning from traditional finance and seeking to enter the digital asset class, while maintaining the safety and security that they anticipate from a regulated financial institution.

Kraken Custody, the secure custody offering for clients who wish to store, administer, and transfer crypto assets from a single interface, will be housed within Kraken Financial. Innovative security protocols developed in-house by Kraken’s premier cybersecurity team will safeguard assets in custody. This best-in-class security will be seamlessly integrated with the rest of the Kraken product portfolio, allowing clients to engage in the fast-paced world of crypto while their funds remain in segregated accounts. Kraken Custody will be able to do so.

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Industry Comments

“The state of Wyoming’s clear regulatory structure means Kraken Financial can offer qualified custody that fully meets institutions’ requirements,” said Trevor Rutar, CEO of Kraken Financial. “Under the supervision of the Wyoming Division of Banking, Kraken Financial will be subject to some of the most rigorous security and operational checks of any crypto custodian. This makes Kraken Financial the ideal entity to offer custody in line with what institutions need to engage in the crypto asset-vertical.”

Rutar continued: “Kraken is uniquely suited to provide qualified custody. We operate one of the most responsive client engagement and account management teams in the market, with a brand that institutions associate with trust. Kraken Custody will be a continuation of the same mission we’ve pursued for over a decade: give clients secure and seamless access to crypto.”

“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,” said Tim Ogilvie, Head of Kraken Institutional. “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.”

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FAQs

What is Kraken’s qualified custody solution?
Kraken’s qualified custody solution, provided through Kraken Financial, is designed for institutional investors who need a secure and regulated environment to store, administer, and transfer their digital assets. Kraken Financial, a state-chartered bank in Wyoming, offers full-reserve custody with rigorous security protocols.
How does Kraken ensure the safety of institutional crypto assets?
Kraken utilizes best-in-class security protocols developed by its in-house cybersecurity team. Assets are held in segregated, full-reserve accounts, separate from Kraken’s other operations, ensuring that funds are always accessible and protected. Additionally, Kraken Financial operates under the supervision of the Wyoming Division of Banking, ensuring compliance with strict regulatory standards.
What is the advantage of Kraken Financial’s custody offering for institutions?
Kraken Financial provides a recognized, trusted framework for institutions transitioning into digital assets. With its state-chartered bank status and rigorous security measures, Kraken Financial offers institutions a safe and compliant platform for crypto custody that aligns with traditional financial regulations.
Why is Kraken’s custody solution important for the crypto market?
Kraken’s custody solution addresses the growing demand for secure, qualified custodians in the crypto space, especially as institutional interest in digital assets increases. With over a decade of experience safeguarding assets, Kraken is well-positioned to provide a trusted and secure solution for institutional clients, particularly in light of the recent success of Bitcoin ETFs.

Conclusion

Kraken’s launch of its qualified custody solution through Kraken Financial represents a significant advancement for institutional investors in the cryptocurrency space. By offering secure, full-reserve custody and maintaining a strong regulatory framework, Kraken provides institutions with a trusted and seamless entry into the digital asset market. This solution ensures that investors can safeguard their assets while engaging in the rapidly evolving crypto landscape, all under the supervision of a regulated financial institution.