Kraken Institutional, a division of the popular crypto exchange Kraken, has recently revealed its plans to broaden its custody services to the United Kingdom and Australia. These services are specifically tailored for high-profile clients such as hedge funds and exchange-traded fund issuers, offering them secure storage solutions for their digital assets.
The custody services provided by Kraken Financial, a US state-chartered bank, allow institutional clients to safely store and transfer their crypto assets. This service is distinct from the exchange platform, with funds being kept in segregated accounts to ensure security. Additionally, clients have the flexibility to withdraw their assets 24/7.
Currently, Kraken Custody supports Bitcoin (BTC), Ethereum (ETH), and USDC stablecoin (USDC), with plans to include more assets later in the year. This expansion into the UK and Australia marks the first international endeavor for Kraken Custody since the launch of its institutional business unit in the United States in March 2024.
Tim Ogilvie, the Head of Kraken Institutional, emphasized the strategic decision to expand into the UK and Australia due to the well-established institutional crypto markets in both countries. According to Ogilvie, Kraken has a strong presence in these regions, making them ideal choices for the extension of Kraken Custody services. He believes that launching Kraken Custody locally will enhance engagement in the asset class for clients in these markets.
In addition to providing custody services, Kraken aims to leverage its wider product suite to offer enhanced security measures and facilitate easier navigation of the crypto space for clients. By focusing on these key aspects, Kraken hopes to streamline the process for institutional clients and provide them with a seamless experience when dealing with digital assets.
The expansion of Kraken Custody to the UK and Australia signifies a significant step for the crypto exchange in its efforts to cater to institutional clients in key markets. With a strong foundation in these regions and a commitment to providing top-notch custody solutions, Kraken is poised to further solidify its position as a leading player in the crypto industry.