Kraken Dives into Stock Trading: Bloomberg Reports

Reportedly slated for a potential launch in 2024, as per Bloomberg's insider source, Kraken, a prominent U.S.-based cryptocurrency exchange, is actively considering venturing into the realm of stock and exchange-traded fund (ETF) trading within both the U.S. and the U.K. This strategic move signifies a notable departure from Kraken's current focus solely on cryptocurrency assets. The report from Bloomberg indicates an ambitious plan to unveil this service by 2024.

In the past, the U.S. arm of the now-defunct FTX crypto exchange did offer stock trading capabilities to its user base. Meanwhile, conventional trading platforms like Robinhood and Wealthsimple have already incorporated trading options for select crypto tokens.

For this expansion endeavor, Kraken intends to leverage a service provided by its recently established arm, Kraken Securities. This division has already secured the requisite regulatory approvals in the U.K., although it is still awaiting clearance in the U.S., according to the insider cited by Bloomberg.

In response to queries from Bitsday regarding the potential development of a stock trading platform, Kraken opted not to provide specific comments. Instead, a spokesperson emphasized Kraken's ongoing dedication to propelling the global adoption of cryptocurrencies. They stated:

 "Kraken is always exploring how it can power the global adoption of cryptocurrencies. While we can’t comment on rumors or speculation, we’re looking to broaden and enhance our offering so clients continue to have secure and seamless access to Kraken’s full product suite."

Given the escalated regulatory scrutiny in the U.S., Kraken has recently intensified its endeavors in international markets. This strategic shift led to the discontinuation of its crypto staking service and the payment of a $30 million fine to resolve charges brought forth by the Securities and Exchange Commission (SEC).

Notably, Kraken has most recently secured registration as a virtual asset service provider in Spain. This enables the exchange to offer crypto exchange and custodial wallet services to residents in the country.

Read more: Crypto Legal Ripple: ASIC vs. Bit Trade