Crypto exchange Kraken plans move into US stock trading: Report
The firm reportedly acquired a broker-dealer license from the U.S. Financial Industry Regulatory Authority as part of the expansion plan.
Cryptocurrency exchange Kraken reportedly plans to offer users trading services for stocks listed in the United States and exchange-traded funds, or ETFs.
According to a Sept. 27 Bloomberg report, the U.S.-based exchange planned to launch its trading services in the U.S. and United Kingdom sometime in 2024 through a division called Kraken Securities. Kraken’s expansion of investment vehicles beyond cryptocurrencies would require licensing from the Financial Industry Regulatory Authority and financial regulators in the U.K., which the exchange reportedly already holds.
The reported move by the crypto exchange came roughly a year after FTX US — now defunct — announced plans to launch a stock trading platform. Certain apps like Robinhood already offer both stock and crypto trading services, but largely U.S.-based digital asset exchanges stick with crypto and related offerings.
Related: Kraken aims for restricted dealer registration in Canada to comply with new rules
On Sept. 26, Kraken announced that it had received licenses in both Spain and Ireland related to offering digital asset services. The company also faces a civil suit brought by the Australian Securities and Investments Commission for allegedly failing to comply with design and distribution obligations for one of its trading products.
In February, Kraken reached an agreement with the U.S. Securities and Exchange Commission to pay $30 million in disgorgement, prejudgment interest and civil penalties as well as halt its staking services and programs to U.S. clients. Cointelegraph reached out to Kraken, but did not receive a response at the time of publication.
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