Kraken, a cryptocurrency exchange based in the United States, is reportedly planning to expand its offerings to include trading services for U.S.-listed stocks and exchange-traded funds (ETFs).
The exchange intends to introduce these trading services in the United States and the United Kingdom in 2024 through its subsidiary, Kraken Securities, as per a report by Bloomberg on September 27. To expand its investment offerings beyond cryptocurrencies, Kraken will need licenses from the UK Financial Industry Regulatory Authority and the relevant financial regulatory authority, which the exchange is said to already possess.
This move follows a similar announcement made about a year ago by FTX.US (now defunct), which had plans to launch a platform for trading stocks. While some apps like Robinhood already offer both stock and cryptocurrency trading, most U.S.-based digital asset exchanges have primarily focused on cryptocurrencies and related products.
On September 26, Kraken revealed that it had secured licenses in Spain and Ireland for providing digital asset services. The exchange is currently facing civil proceedings from the Australian Securities and Investments Commission, which alleges non-compliance with design and distribution obligations for one of its trading products.
In February of this year, Kraken reached an agreement with the U.S. Securities and Exchange Commission to pay $30 million in illegal gains, prejudgment interest, and civil penalties. As part of the agreement, Kraken also ceased providing staking services and projects to U.S. customers. Cointelegraph reached out to Kraken for comments but had not received a response at the time of this report.
