What is Kraken?
Kraken, an American cryptocurrency exchange with over 10 years of history, is now a popular trading platform with 4 million traders from 176 countries. It is accredited by FinCEN and the FCA, being a depository institution in the U.S. market.
Full name of the company: Kraken
Foundation date: 2011
Founder: Jesse Powell (USA)
Capitalization: more than 285 million dollars
Legal status: registration in the United States, California (San Francisco)
Market geography: all countries except Cuba, Iran, Afghanistan, Iraq, North Korea, Japan, Tajikistan, Guinea-Bissau, New York, and Washington State
The Kraken cryptocurrency exchange is one of the oldest but very popular trading platforms. Today, it supports 56 cryptocurrencies.
The company is focused on servicing private traders, mid-sized businesses, and large corporations, including institutional investors. It is among the top 5 crypto platforms in the world, ranking next to Binance, Coinbase, Huobi, and Bithumb.
Trading services are provided under licenses and accreditations obtained by American FinCEN, Canadian FINTRAC, Australian AUSTRAC, British FCA, and Japanese FSA.
The platform is the leader in terms of trading volume with the BTC/EUR pair. Moreover, the most popular trading assets among traders are Bitcoin and Ethereum in combinations with the euro and dollar.
The interface offers a choice of 13 languages, and when registering an account, you can select the level of verification, allowing access to the crypto exchange features (Basic, Express, Standard, Pro). The minimum deposit is 10 dollars or 5 euros. Novice traders are allowed to withdraw not more than 5 thousand dollars per day.
Today, there are about 350 tools available and the following types of trading:
- spot trading - transactions can be made with pairs composed of cryptocurrencies, stablecoins, and fiat currencies. The most liquid ones are XBT/USD, XBT/EUR, ETH/USD, USDT/USD, USDT/EUR;
- margin trade - it is possible to use the leverage up to 1:5, but there is a limit for a single transaction of 500 thousand dollars;
- P2P - this type of trading is available only upon completing full verification (level 4). Users can advertise or accept offers from others to exchange fiat currencies for cryptocurrencies;
- derivatives market - it is possible to trade derivative financial tools (futures, perpetual swaps, crypto-futures) on a separate platform. Access is open to users with the 2nd level of verification. Leverage up to 1:50 can be used for transactions.
At the Kraken crypto exchange, you can start staking by distributing free funds and getting passive income on such tools as DOT, KSM, KAVA, ATOM, XTZ, FLOW, ETH, BTC, EUR, USD, ADA, and SOL. The annual yield is 0.25-20%.
Such trading orders as Market (opening at the current market price) and Limit (using stop-loss and take-profit) are available.
Kraken has its own mobile app, adapted for all Android and iOS devices. Depending on your market choice, you should use the appropriate version of the app:
- New Kraken – for classic crypto trading;
- Kraken Pro – trading using API keys;
- Kraken Futures – for transactions with derivatives.
Some extra services of the exchange include a training base and a referral program, as well as access to the Cryptowatch service to keep track of the price dynamics of all assets.
The company does not have its own wallet for storing coins (all funds are placed on general wallets), so users need to use their own wallets, which will ensure the full safety of assets.
2011 – the company's founder is Jesse Powell, who has supported the importance of blockchain and bitcoin since the cryptocurrency ecosystem's inception.
That year of activity was devoted to the registration of a cryptocurrency exchange, its complex development, and testing.
2013 – the official launch of the trading platform took place in September, and the main crypto-assets for transactions were BTC, LTC, and EUR. The company joined with other market players to launch the Digital Asset Transfer Authority Committee.
2014 – the company successfully passed the first round of $5 million investment from Hummingbird Ventures. The crypto exchange was part of a group of companies specializing in consulting services for Japanese politician Mineyuki Fukuda. At that time, he was the head of the IT committee for the creation of the Japan Digital Asset Authority. The agency became the first state-supported institution in the world to regulate economic relations in the bitcoin exchange segment.
The Kraken cryptocurrency exchange ranked among the top platforms in terms of bitcoin trading volumes in payment for euros.
2016 – the company purchased the New York-based Coinsetter exchange, which allowed it to enter the U.S. market in 37 states and offer its services to Canadians. After a while, the company managed to attract a large amount of investment from the Japanese company SBI Investment, as well as financing from the leading foreign exchange broker Money Partners Group.
The same year, the launch of trading transactions with ETH through darkpools occurred, as well as a purchasing deal on the Dutch platform CleverCoin, which increased the liquidity of the Kraken platform with the subsequent increase in the customer base.
2017 – there were several heavy DDoS-attacks against the platform, but that did not prevent the company from restoring full functionality, buying Cryptowatch cryptocurrency price monitoring service, as well as launching support for USDT stablecoin, DASH coin, XRP paired with euro, dollar, yen and Canadian dollar, and adding new options for depositing into trading accounts in fiat currency.
2018 – crypto exchange ceased to provide services in the Japanese market, explaining such a decision by the sharp rise in the cost of doing business in the country, and also successfully launched OTC-platform for over-the-counter transactions.
2019 the year started with purchasing the UK-regulated derivatives platform Crypto Facilities and Interchange, a startup for portfolio management by institutional investors. It made a successful round of financing and received a new $13.5 million investment package. A partnership with Silvergate Bank started, allowing users to make quick transfers without paying fees.
2020 – Kraken bought the Australian trading platform Bit Trade and was about to enter the Australian market, opening a division in the country. Marco Santori, a former Blockchain president, joins the company as head of legal affairs.
In the fall, the Kraken cryptocurrency exchange received the status of a special purpose depository institution in the U.S., which equated it to a traditional financial institution. At the end of the year, the company announced the launch of Lightning Network protocol support.
2021 – Kraken Ventures, a venture capital fund that would invest in DeFi and blockchain startups, broke ground with its first fundraising development package totaling $65 million.
RIT Capital Partners investment fund became the co-owner of the trading platform.
That same year, Kraken signed a deal to buy the Staked stacking platform, launched a new mobile app for U.S. and European retail investors, while its subsidiary Crypto Facilities was licensed to provide its services in the U.K. market.
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