U.S.-based cryptocurrency exchange Kraken is working on establishing its own bank, despite the recent regulatory headwinds, said Kraken’s chief legal officer, Marco Santori, on The Scoop podcast. 

See related article: Circle joins Crypto.com, Coinbase in cutting ties with embattled crypto bank Silvergate

Fast facts

  • “Kraken bank is very much on track to launch,” said Santori on The Scoop podcast’s latest episode released on March 6.
  • The exchange’s efforts were also confirmed by Kraken Support, which added that the bank “will initially be available to existing Kraken clients in the U.S. with potential international expansion in the future.”
  • Kraken Bank will be based in the state of Wyoming and aims to offer “a more seamless integration between crypto and the traditional financial system,” according to Kraken Bank’s website.
  • “We’re the first (ever) crypto company to be awarded a U.S. state banking charter. It’s known as a Special Purpose Depository Institution or SPD,” wrote the website. 
  • Kraken’s decision comes days after California-based, crypto-focused bank Silvergate Capital Corp. announced Friday that it is shutting down the Silvergate Exchange Network, an instant settlement banking service that was used by multiple crypto firms.

See related article: Silvergate probed by US prosecutors over FTX, Alameda accounts: Bloomberg