Crypto Exchange Kraken Enters TradFi; To Offer Stock Trading As Soon As 2024

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Cryptocurrency exchange Kraken intends to expand its services in 2024 to include trading in traditional US-listed stocks and exchange-traded funds (ETFs), Bloomberg reported on Wednesday.

Kraken will roll out the new service in the U.S. and UK through a newly formed division dubbed Kraken Securities. The move will effectively put Kraken in direct competition with prominent investing and trading platforms like Robinhood.

Kraken To Move Into Stock Trading

Kraken is planning to make its entry into the stock trading market.

According to a September 27 report by Bloomberg citing an individual familiar with the matter, the new service would let Kraken customers purchase and trade cryptocurrencies, U.S.-listed stocks, and ETFs within a consolidated portfolio. Users who activate equities trading will see their combined crypto and stock balances shown as a sum total.

The exchange has already secured the requisite regulatory permits in the UK and has applied for a broker-dealer license in the US via the Financial Industry Regulatory Authority (FINRA) as it plans to roll out the stock trading platform as soon as next year. The service would make Kraken the first digital asset exchange to establish trading options beyond cryptocurrencies. 

“While we can’t comment on rumors or speculation, we’re looking to broaden and enhance our offering so clients continue to have secure and seamless access to Kraken’s full product suite,” a Kraken spokesperson remarked.

Notably, the move will pit Kraken against zero-commission players like Robinhood and Public.com, allowing customers to trade U.S.-listed equities and crypto. A couple of months before its parent company imploded, FTX.US also offered stock trading for its customers.

Kraken has been keen on expanding its global footprint and service offerings amid increased regulatory heat in the U.S. The exchange recently had to stop offering its crypto staking services and programs to U.S. clients and pay a $30 million fine to settle charges brought against it by the Securities and Exchange Commission (SEC).

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