Kraken Launches Institutional Service for Cryptocurrency Exchange

The cryptocurrency platform Kraken has unveiled a solution geared towards entities eager to venture into the crypto space.

Known as Kraken Institutional, this freshly minted division is positioned as a comprehensive hub encompassing all of Kraken’s current offerings tailored for institutional clients, asset managers, hedge funds, and affluent individuals, per an announcement on Tuesday (Feb. 27).

Kraken Institutional is poised to be the singular gateway for scalable and seamlessly integrated solutions tailored to institutions desiring access to digital currencies, according to the announcement. It merges various Kraken offerings that institutional users already utilize, such as spot trading, over-the-counter (OTC) trading, and staking services.

“Those familiar with working alongside Kraken recognize our commitment to high-caliber products and prioritizing our clients,” stated Kraken CEO David Ripley in the press release. “Having led the crypto exchange sphere for in excess of a decade, through Kraken Institutional, we’re extending the same in-depth knowledge and advanced technology to enhance trading outcomes for our institutional customers.”

Heading up the new branch is Tim Ogilvie, whose introduction to Kraken comes post its acquisition of Staked, as indicated by the press statement.

“The wave of institutional engagement with crypto is accelerating, and the creation of Kraken Institutional positions us to expand alongside this client segment,” commented Ogilvie, the global head of institutional, in the announcement. “The recent approval of an exchange-traded fund (ETF) has fanned the flames of institutional interest. With Kraken Institutional, we’re consolidating our offerings to fulfill the requirements of these clients. Crypto, like Kraken Institutional, is advancing swiftly: stay tuned for more developments soon.”

Kraken, established in 2011, holds the distinction of being among the pioneering platforms to provide services like spot trading with leverage, parachain auctions, staking, regulated futures, and index services. Currently, the exchange boasts a user base exceeding 10 million, including both individual and institutional clients, engaging in trades with over 200 digital assets and a selection of six fiat currencies.

However, in November, the U.S. Securities and Exchange Commission (SEC) accused Kraken of operating an illicit cryptocurrency exchange. According to a PYMNTS report, the SEC alleges that Kraken has been unlawfully facilitating the sale of crypto asset securities since 2018, amassing hundreds of millions of dollars.

In response, Kraken published a blog post expressing its disagreement with the SEC’s stance, indicating it plans to defend itself in court proceedings. The exchange emphasized that the SEC’s allegations do not include any accusations related to fraud, market manipulation, customer harm due to hacking or security breaches, or violations of duty of care.