San Francisco-based crypto exchange Kraken is reportedly considering a move into the stock market with the addition of stocks and exchange-traded funds (ETFs) to its trading platform, according to a Bloomberg report today.
The move, slated for as early as 2024, will mark Kraken as the first crypto exchange to diversify its trading options beyond cryptocurrencies.
Bloomberg cites an anonymous source familiar with the matter, stating that the new services could be available for trading in both the U.S. and the U.K. The move comes as Kraken faces increased regulatory scrutiny in the United States, having recently settled Securities and Exchange Commission (SEC) charges.
Unlike other crypto exchanges, Kraken plans to venture into the territory of traditional trading platforms such as Robinhood and Wealthsimple, both of which offer limited crypto token trading alongside stocks. Kraken’s new services would be built by a recently established division called Kraken Securities.
According to the same Bloomberg source, Kraken Securities has already secured the necessary regulatory permits in the U.K., although U.S. approval is still pending.
"Kraken is always exploring how it can power the global adoption of cryptocurrencies," a spokesperson told CoinDesk. "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 ambitious expansion plans are not without challenges. The crypto exchange had to close its crypto staking service and paid a $30 million fine to settle SEC charges in February.
The exchange has been increasing its efforts to expand in countries outside the U.S., where it faces less regulatory
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