TL;DR
- Kraken is introducing a new platform to meet the needs of institutional investors interested in gaining exposure to cryptocurrency.
- The platform will bring Kraken’s core functions into a single offering to provide investors with an enhanced crypto experience.
New Brand to Offer Dedicated Crypto Solutions for Institutions
Crypto exchange Kraken is launching a new solution for institutions interested in gaining exposure to the cryptocurrency.
The new brand—Dubbed Kraken Institutional, will be a one-stop shop for the exchange’s existing products and services.
Such services include the firm’s spot exchange and derivatives trading, qualified custody, and indices through Kraken subsidiary CF Benchmarks.
It targets institutions, asset managers, hedge funds, and high-net-worth individuals. And will address their institutional clients’ needs following the incredible surge in crypto exchange-traded funds (ETFs).
The diversification of the institutional market to include more types of asset managers makes this a timely development, particularly as the institutional adoption of crypto is expected to grow rapidly.
Tim Ogilvie, global head of Kraken’s institutional business, stated.
This Institutional product is set to debut later this year. It will include qualified custody services, which Kraken Financial offers. A famous Wyoming chartered Special Purpose Depository Institution.
Kraken Institutional Solution to Meet Global Demand
Several firms have created crypto custody services in recent months.
A move catalyzed the US Securities and Exchange Commission proposal, requiring safeguarding client assets. It’s what is popularly known as qualified custodians.
Ogilvie admitted that the recent new brand is less about grabbing existing market share. However, it is more about preparing the ground for new entrants engaging in the digital asset class.
Kraken’s brand new launch comes only three years after Coinbase debuted its beta version, Coinbase Prime. Its offering provides custody, trading, and analytical services to institutions.
The new platform will rival the recently introduced lending platform that Coinbase has introduced to target US institutional investors.
It also debuted a smart contract platform that lets institutions trade and create new digital assets.
Kraken has an excellent reputation as one of the most reliable players on the market. It has the fastest and most liquid marketplace in the crypto industry.
Global Interest and Regulatory Dynamics
The platform is already suited to be a primary trading venue for institutions as they offer quality products with a client-first experience.
They offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.
This is more evident in how institutional investors engage with the crypto exchange. Recent data shows that Kraken’s CF Benchmarks has engaged 50 firms that want its spot Bitcoin ETF pricing services.
As the regulatory environment evolves, asset managers and financial institutions are exploring spot Bitcoin ETF pricing.
They’re venturing into this avenue to tap into the burgeoning crypto market. CF Benchmarks is already working with major players like Franklin Templeton and BlackRock.
The said firms are witnessing a significant uptick in interest. Half of the firms in talks with Kraken are based in the United States, while the rest are from Europe and Asia.
Ogilvie reiterates that there is plenty of space for more than one institutional crypto offering. He’s confident that as institutional investors start to enter the space, the total addressable market will grow.
Will Kraken meet the needs of institutional clients with its move to consolidate various products and services?
Shawn Munir
Shawn Munir is the CEO of Coinweb.com and spearheads all the collaborative partnerships for the platform. He bought his first Bitcoin in 2017 and never looked back. He is also an investor in 200+ Web3 startups and is considered an expert in the field. Before building Coinweb with his co-founders, he co-founded Presail, a management platform designed for companies and investors to manage their investments in Web 3. In addition to his entrepreneurial endeavors, Shawn serves on the United Nations...
