According to Bloomberg, crypto exchange Kraken, which was founded in 2011, is planning to support the trading of US-listed stocks and exchange-traded funds. The new services are set to be offered in the US and the UK via a newly established division named Kraken Securities.
Bloomberg reports that Kraken has already obtained the necessary regulatory approvals in the UK and is in the process of applying for a broker-dealer license in the US through the Financial Industry Regulatory Authority (FINRA). The company is targeting a 2024 launch for these new services.
Entering the stock trading market will pit Kraken against existing zero-commission platforms like Robinhood and Public.com, says Bloomberg. This move comes at a time when the retail trading boom, initially sparked by the Covid-19 pandemic, has started to decline.
Per the Bloomberg report, once the stock trading feature becomes available, eligible Kraken customers will be prompted to activate the service. After activation, their portfolio will display a combined balance of cryptocurrencies, stocks, and ETFs.
Kraken is also working on expanding its prime brokerage services and is planning to launch a qualified custodian service for institutional clients in the near future, according to Bloomberg. This separate custody service is currently seeking approval from the state of Wyoming.
Despite a general decline in trading volumes, Bloomberg notes that Kraken has been gaining market share, largely at the expense of Binance. As of now, Kraken’s share of the global spot trading market is at its highest since 2018, standing at 3.5%, according to data from CCData.
Bloomberg reports that a spokesperson for Kraken chose not to comment on these developments. Similarly, the UK’s Financial Conduct Authority and a spokesperson for FINRA did not immediately respond to their requests for comments.