Kraken bets "more than ever" on Europe

Wednesday, April 24, 2024

As the markets recover, the US platform wants to accelerate its growth in Europe, particularly in its business with institutional investors.

Rising markets are whetting the appetite of exchange platforms. Already well established in the UK, Kraken, which has just over 2,000 employees worldwide, wants to accelerate in Europe, and in particular on its business with institutional investors. "This is our priority for the next twelve months", confirms a manager at the San Francisco-based company.

"There is growing demand from hedge funds, family offices and other investment companies in Europe", confirms a person close to the company, who highlights the impact of the arrival of Bitcoin Spot ETFs in the US: "This has accelerated things for some."

Kraken already has an office in London with several dozen staff. The aim is to open others in the European Union, while the company founded in 2011 recently obtained registrations as a digital asset service provider (DASP) in Italy, Spain, Ireland and earlier this year in the Netherlands.

According to our information, the company is also in discussions with the French regulator. As a reminder, the entry into force of the MiCA regulation by the end of the year will require (with a two-year transition period) all platforms to obtain PSAN authorisation in at least one of the member countries in order to operate in the EU.

This desire to accelerate outside - beyond the UK - is no accident. Kraken wants to take advantage of Binance's withdrawal from certain countries such as Germany and the Netherlands.

The company also wants to maintain the historic lead it has in Europe over its compatriot Coinbase, which is also banking heavily on Europe. The company headed by Brian Armstrong, which already has a strong presence in Germany and the UK, has just set up an office in Paris, France, where it wants to "become the leader".

This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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