The State of Wyoming in the USA approved Kraken’s request. What services will it offer to customers. Because evolution is important for the entire crypto space. Ethereum is galloping.
This is a development of historical significance. A milestone in Bitcoin’s path to widespread acceptance and recognition. The State of Wyoming in the USA approved the application of Kraken, one of the first cryptocurrency exchanges, to establish a Special Purpose Stocks Foundation (SPDI). In other words, the world’s first official digital banking license was issued.
Kraken Financial, as it is called, will initially offer its services only in the US, but will soon operate globally. It will be able to do whatever any traditional bank does, with the difference that it will also offer custody services for cryptocurrencies. Why is it so important, given that there is still the possibility of custody? Because for the first time it will be for individuals and businesses, not just for institutions.
Kraken is the first start-up bank to be licensed in Wyoming since 2006. As a special purpose institution, it will be required to maintain 100% of its deposits at all times. Not just a fraction, as is the case with traditional banks. If her clients make withdrawals, she will be able to fulfill her obligation to provide them with the money, regardless of how many loans she has pending.
In its first year of operation, Kraken Financial hopes to offer the following services: Custody of digital assets, savings accounts, money transfer and financing services. Over time, it will be extended to other services, such as having its customers have a debit card that will be powered by their deposit account in cryptocurrencies.
The effects in the field of crypto
Many may not realize what this historical development signifies. Kraken will be able to offer a digitally native banking experience that combines traditional values with cryptocurrencies. Users have a savings account that supports both government currencies and crypto.
Of course it is still early to know how it will develop. If there is only one copy of the traditional banking system, it will not create any radical innovation. What makes the venture exciting is the ability to harness the benefits of cryptocurrencies to create a new, improved banking experience that will serve customers worldwide.
This, after all, is their vision. To become a credible bridge between the world of cryptocurrencies, the digital monetary future and the existing financial ecosystem. This is a natural evolution. Banks were created for people who wanted to deliver assets somewhere that they could trust. Banks continue to play this role to this day. As the space of cryptocurrencies grows and penetrates everyday life, the phenomenon will extend to crypto. There will be a demand for similar services provided for government currencies.
There are other advantages to the Kraken exchange. By owning a fully independent bank, it reduces its dependence on third-party financial institutions. It will be able to provide new innovative products to its customers. As a state-licensed bank, it now obtains the legal passport to operate in other States, without having to deal with compliance procedures per State.
