Kraken's institutional platform debuts custody service named Kraken Custody
Quick Take
- Kraken’s platform for institutional investors launched custody services.
- The move creates competition for Coinbase, which become the custody platform of choice for institutional investors issuing spot bitcoin ETFs.
Kraken launched custody services for Kraken Institutional, a platform specifically for institutional investors, the crypto exchange announced Wednesday.
The new custodial service, called Kraken Custody, will provide digital asset custodial services and create deposit accounts for institutions, according to an official release. Kraken Custody will also let institutions store, manage and transfer their funds within a single interface, protected by Kraken's in-house security protocols.
"The launch of Kraken Custody has timed well with the Bitcoin 
BTC
-1.84%
ETF debut breaking all sorts of first in US capital markets," a Kraken spokesperson told The Block. "We anticipate demand for qualified custody solutions will continue to grow alongside the crypto products space."
Kraken's state-chartered banking arm Kraken Financial, based in Wyoming, facilitates the institutional custody service.
“The state of Wyoming’s clear regulatory structure means Kraken Financial can offer qualified custody that fully meets institutions’ requirements,” said Trevor Rutar, CEO of Kraken Financial, in a statement. “Under the supervision of the Wyoming Division of Banking, Kraken Financial will be subject to some of the most rigorous security and operational checks of any crypto custodian.”
Kraken launched institutional services on Feb. 27 this year after BlackRock, Franklin Templeton and Grayscale Investments tapped Coinbase as their spot bitcoin ETF custodian.
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