Kraken Approved as SPDI Bank in US, First of Its Kind Globally
The United States based cryptocurrency exchange Kraken has been awarded with a banking license approval in the State of Wyoming, paving its way to becoming the first crypto bank in the American union.
According to a blog post published by the company, the Wyoming Banking Board approved Kraken's application to form a Special Purpose Depository Institution (SPDI), the first of its kind in the world.
The new organization would be called Kraken Financial. It will become the first digital asset company in United States history to be recognized as a bank charter under state and federal law.
Besides, Kraken will be the first regulated bank in the United States "to provide comprehensive deposit-taking, custody and fiduciary services for digital assets."
The blog post said:
From paying bills and receiving salaries in cryptocurrency to incorporating digital assets into investment and trading portfolios, Kraken Financial will enable Kraken clients in the U.S. to bank seamlessly between digital assets and national currencies.
Kraken: A Global Project
The SPDI charter approval is a significant step in Kraken's vision of becoming a globally trusted bridge between crypto and fiat worlds and promoting the mix between the digital economy and the current financial ecosystem.
David Kinitsky, CEO of Kraken Financial said:
We're thrilled to work in a state so aligned with our philosophy and values. Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.
Headquartered in Cheyenne, Wyoming, Kraken Financial will be offered to clients in the United States at the first stage, but it plans to operate globally in the middle term.
Initially, Kraken's SPDI will offer deposits in USD and custody digital assets at a regulated chartered bank. Also, digital asset custody, demand/deposit accounts (DDAs), and wire transfer and funding services.
David Kinitsky, a managing director at Kraken and the CEO Kraken Financial said
By becoming a bank we get direct access to federal payments infrastructure, and we can more seamlessly integrate banking and funding options for customers.
Following the news on Wednesday, Bitcoin traded positive and reached prices above the 11,000 level against the dollar for the first time since September 3.
On Thursday, BTC/USD is trading negatively at 10,770, which is 1.67 percent down in the day.
Technically, the pair looks in a recovery path, but the 11,000 seems a stiff resistance to be broken easily. The bearish case is for now contained in the 10,000 area.
According to Tanya Abrosimova, Cryptocurrency editor at FXStreet, Bitcoin reached a short term roof at 11,000, and now the expectation is for a retest of the 10,500. "BTC/USD may extend the downside correction after a failed attempt to settle above $11,000."
The bearish harami pattern and TD Sequential sell signal are the most significant suggest that the market may not be ready for a decisive breakthrough just yet, and BTC/USD may retreat at least to $10,500. On the other hand, the decreasing deposits are typically a bullish signal, which makes us cautious. A sustainable move above $11,300 will invalidate the immediate bearish scenario and open up the way to the next barrier of $11,700.
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