American cryptocurrency exchange Kraken is set to open its own financial institution as Silvergate crisis deepens. As Kraken Support noted in a tweet response, the so-called Kraken Bank is "not open yet but on its way."
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While no timeframe for the launch was specified, the team noted the offering would initially be available only to Kraken clients in the US. However, in the future, the Wyoming-based crypto bank might expand its services internationally, Kraken added.
On a dedicated webpage, the exchange says there won't be any in-person customer-serving activities as the bank is fully digital. However, customer support and service will still be available around the clock.
Although Kraken describes its upcoming venture as a bank, deposits in Kraken Bank will not be FDIC insured. The exchange claims it will ever need a bailout or any public-funded backstop as Kraken Bank "will be fully reserved," adding that all assets "will be kept on hand and available as cash or the least risky, most liquid cash equivalents."
Kraken's teaser comes as the crypto market is seeking a new banking harbor after the California-based crypto-friendly bank Silvergate Bank said in a regulatory filing it might be "less than well capitalized" due to its debts. Coinbase, Kraken, Galaxy Digital and many others cut their ties with Silvergate, sending shares SI down more than 50%.
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