Kraken Explores Stock Trading Expansion, Aims for 2024 Launch

In a recent development, U.S. cryptocurrency exchange Kraken is actively considering the introduction of stock and exchange-traded fund (ETF) trading options for users in both the United States and the United Kingdom. This initiative, reported by Bloomberg and attributed to an inside source, would mark a significant departure for Kraken as it ventures beyond the realm of cryptocurrency trading. The exchange is reportedly aiming to roll out this new service as early as 2024.

This move follows in the footsteps of FTX’s U.S. arm, which previously offered stock trading for its clientele. Traditional trading platforms like Robinhood and Wealthsimple have also delved into the trading of select cryptocurrency tokens.

To facilitate this expansion, Kraken is establishing a dedicated division known as “Kraken Securities,” which has already secured the necessary regulatory permits in the U.K. However, regulatory approval in the U.S. is still pending, according to the undisclosed source cited by Bloomberg.

When approached for comment, Kraken remained tight-lipped about the potential stock trading platform. A spokesperson for the exchange stated, “Kraken is always exploring how it can power the global adoption of 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.”

Kraken’s recent strategic efforts have focused on expanding its presence beyond the U.S., driven in part by heightened regulatory scrutiny within the country. As part of this ongoing shift, the exchange recently discontinued its crypto staking service and agreed to a $30 million fine to resolve charges from the Securities and Exchange Commission (SEC). Furthermore, Kraken has obtained a virtual asset service provider registration in Spain, enabling it to offer cryptocurrency exchange and custodial wallet services to Spanish residents.