Crypto exchange Kraken gets into forex trading business

Quick Take

  • Kraken has entered into the business of forex trading
  • The new service is going live today, with nine fiat pairs
  • Kraken’s current business lines include a cryptocurrency exchange, an over-the-counter (OTC) trading desk, and a futures trading platform.

Cryptocurrency exchange Kraken has ventured into the business of traditional forex (FX) trading.

The new service is going live today at around 14:30 UTC (10:30 am EST), with nine fiat pairs.  

The pairs include six major currencies - U.S. dollar (USD), Canadian dollar (CAD), euro (EUR), British pound (GBP), Swiss franc (CHF) and Japanese yen (JPY).

Source: Kraken 

Kraken said additional pairs may be added in the future.

Trading fees on forex pairs will be based on Kraken's stablecoin fees, which uses a maker-taker fee model based on volume activity.

Margin trading (i.e., trading using borrowed funds) is currently not available for forex pairs, although Kraken does offer it for cryptocurrencies.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Notably, the forex trading service is not available for U.S. residents.

Core business lines

San Fransico-based Kraken is one of the oldest players in the crypto space, having founded in 2011. Its main business lines include a cryptocurrency exchange, an over-the-counter (OTC) trading desk, and a futures trading platform, as The Block reported last September. 

Over the years, Kraken has made various acquisitions to improve its infrastructure and strengthen its team. Most recently, Kraken acquired Australia-based crypto exchange Bit Trade and OTC desk Circle Trade. Last year, in a "nine-figure deal," Kraken acquired Crypto Facilities, which it rebranded as Kraken Futures. In total, the exchange has made ten acquisitions public since its founding.

Kraken's entry into forex trading appears to be an inaugural move. It remains to be seen whether other crypto exchanges follow suit.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.