- Kraken is planning to explore crypto trading alternatives.
- The exchange anticipates launching a stock option locally and abroad.
- More crypto firms are eyeing to expand their services beyond the digital assets realm.
In a move seen to diversify its direct investment offerings locally and overseas, U.S. cryptocurrency exchange Kraken is reportedly planning the first foray outside its digital assets roots.
The development comes as the crypto exchange is working to strengthen its global presence, thanks to increased regulatory scrutiny in the U.S., which recently made the company shut down its crypto staking option and pay $30 million in settlement with the Securities and Exchange Commission (SEC).
Inside the New Plan
According to a September 27 report by Bloomberg, Kraken anticipates launching its stock trading services in the U.S. and the U.K. sometime in 2024 through a new division known as Kraken Securities.
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Per the report, the exchange has already secured all the relevant permits required for its U.K. stock offerings, and its application with the U.S. Financial Industry Regulatory Authority (FINRA) awaits a green light.
If approved locally and all systems go for Kraken, the company will become the first crypto exchange to explore trade options outside cryptocurrency assets after a similar effort by FTX went up in smoke when the exchange collapsed in November 2022.
The move comes on the heels of a devastating last year for the crypto industry coupled with this year’s market uncertainty, which has prompted most firms in the sector to explore expanding their services.
The Race to Diversification
In pursuing stock alternatives for its customers, Kraken simply borrows from the adage: diversify your assets.
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Lately, crypto-related firms have expressed intentions of “putting their eggs in different baskets,” including Robinhood (HOOD) and Wealthsimple, which currently offer traditional account options for their customers.
Some firms that have filed for a spot Bitcoin exchange-traded fund (ETF) with the SEC, seeking to diversify their product lines, include Grayscale, ARK 21Shares, BlackRock, WisdomTree, and Valkyrie Investments.
Read more about Kraken’s regulatory woes in Australia:
Kraken Stumbles into Legal Crosshairs in Australia
Explore how Kraken stacks up against eToro:
Kraken vs. eToro: Everything You Need to Know Before You Trade
