Cryptocurrency exchange Kraken gets banking license

Cryptocurrency exchange Kraken is the first crypto company to acquire a banking license in the U.S.

Why should we care?
What’s unique about Kraken’s banking license is that it’s not a national banking charter or an industrial loan company license. Kraken received a special-purpose depository institution license from Wyoming, which will allow its clients to bank between digital assets and national currencies; hold digital assets; pay bills; and get paid in cryptocurrencies within a regulated, U.S. institution. The company will now be able to reduce friction associated with funding cryptocurrency with fiat currency and launch new products. Kraken’s success in gaining a license was enabled by laws passed in Wyoming to encourage cryptocurrency firms to operate in the state. These laws are also paving the way for other crypto-related businesses to take root: Caitlin Long, a former Morgan Stanley and Credit Suisse managing director, is starting a special-purpose depository institution that will offer custody and other crypto banking services.