Kraken’s Operations Director Ad in Wyoming Raises Speculation on Upcoming ‘Special Purpose Bank’
Kraken crypto exchange is scaling its operations to include a limited purpose bank in its portfolio. The firm plans to use the Special Depository Institution (SPDI) to reduce the challenges faced by exchanges when it comes to the role of fund custodians. This Wyoming based institution will be able to store fiat form currencies for its clientele and probably operate in New York without BitLicense once the SPDI is approved.
The digital asset exchange has already announced a position for the operations director of the SPDI which will first launch in Wyoming. This new hire is expected to build a fundamental operational base in terms of resources and human capital and eventually facilitate the integration of the SPDI with Kraken exchange services. It is still however unclear if Kraken has filed for a charter to run a SDPI within Wyoming’s jurisdiction.
This move might change Kraken’s operational outlook especially with the highly potential New York market. According to officials in Wyoming, the strategy can be a solution to BitLicense, a regulatory requirement that has been a major hurdle and even forced Kraken out of the U.S market. Other stakeholders noted that a legal battle might ensue before fully incorporating Kraken’s SPDI in New York but reliance on the handful crypto-friendly banks would be a problem of the past.
Kraken’s ad for an operations director is mainly bank-oriented since the charter application process for SPDI’s is pretty similar to that of a traditional bank. The job description will revolve around capital markets, AML, Bank Secrecy, trust services and payments; Kraken has since outlined its preference to be seasoned banking professionals.