Kraken Unleashes a Crypto Revolution: Expanding Derivatives and Empowering Payments with PayPal
The Rise of Crypto Derivatives:
As the dust settled after FTX's unexpected downfall last November, Kraken swiftly identified an opportunity to seize the reins of the lucrative derivatives sector. With a staggering $1.85 trillion in trading volume recorded across centralized exchanges just last month, this was a realm ripe for exploration.
Kraken's subsidiary, Crypto Facilities, now stands at the forefront of this expedition. In a bid to redefine the derivatives landscape, Crypto Facilities is in discussions with the UK's Financial Conduct Authority (FCA) to expand its custodial services. This expansion aims to introduce futures contracts denominated in fiat currencies like euros and pounds, a significant leap beyond its existing multilateral trading facility license obtained in 2020.
Mark Jennings, the CEO of Crypto Facilities, envisions this ambitious expansion to materialize within the next six to twelve months. However, amidst this excitement, he remains cautiously aware of the current market conditions. Trading volumes have seen a substantial drop, plummeting from the previous heights of $700 to $800 million per day, primarily due to the FTX incident.
Empowering Payments with PayPal:
Simultaneously, Kraken is revolutionizing the way we interact with cryptocurrencies. On September 7th, Kraken unleashed a game-changer by introducing support for PayPal deposits in the UK and Europe. This feature, initially limited to its mobile app, paves the way for swift and accessible crypto funding.
Users can now fund their accounts with ease, albeit incurring a minor 2.4% fee. This monumental step holds the potential to democratize crypto, making it accessible to a broader demographic. To access this service, users need to complete an Intermediate or Pro level verification and can deposit up to £1,000 ($1,250) daily. The funds become available almost instantly, albeit with a seven-day withdrawal hold period.
This innovation arrives hot on the heels of Kraken's interface makeover and the integration of PayPal's new stablecoin, PYUSD, into its platform.
Kraken's journey through the world of cryptocurrencies has been nothing short of revolutionary. From conquering the derivatives domain to reshaping the landscape of crypto payments with PayPal, Kraken's strategic moves are rewriting the playbook. These developments are emblematic of a broader trend, where US-based crypto platforms are charting global expansion courses in response to the watchful eyes of regulatory entities like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
While challenges and uncertainties persist in this ever-evolving crypto realm, Kraken's bold steps reaffirm its commitment to innovation and its determination to lead the charge toward a brighter crypto future.