Crypto exchange giant, Kraken, has introduced Krak, a novel global fiat and cryptocurrency payments application poised to rival industry leaders such as Venmo, PayPal, and Cash App. Krak is designed to provide users with complimentary local transactions and free international transfers to over 160 nations.
Furthermore, the app lets users gain up to 4.1% rewards on their holdings of the U.S. dollar-pegged stablecoin, Global Dollar (USDG), issued by Paxos. It also offers up to 10% staking rewards on other digital assets, as stated in a company press release.
The launch of Krak aligns with Kraken’s ongoing expansion strategy. The company is diversifying its asset portfolio beyond cryptocurrencies as it gears up for an IPO. Earlier this year, the company revealed its plans to initiate tokenized stock trading for clients outside the U.S. and acquired U.S. retail futures platform NinjaTrader for $1.5 billion.
Kraken’s latest app is expected to incorporate unique features like a cryptocurrency credit line, enabling users to loan against their digital asset holdings. Users can also look forward to physical and virtual Krak cards and “Kraktags,” a user-friendly system akin to Ethereum Name Service (ENS) domain names, which replaces complicated blockchain addresses to simplify transactions.
According to a statement by Kraken co-CEO Arjun Sethi, Krak is built on “permissionless infrastructure” with public blockchains settling transactions globally in real time. The absence of intermediaries ensures “faster settlement, lower fees, and more access.”
Exchange fees from users swapping one asset or currency for another are anticipated to be Krak’s primary revenue stream. The app supports over 300 crypto and fiat currencies.
Krak positions itself as a cryptocurrency-focused alternative to payment apps like Venmo and PayPal, which have integrated crypto services in recent years. Notably, PayPal launched a stablecoin, PYUSD, in 2023 and Venmo introduced crypto trading features in 2021, one year after PayPal did the same. Both companies have integrated ENS for streamlined crypto transactions.
As for additional information, The Block has reached out to Kraken for further comments.
Disclaimer: This article is for informational purposes only. It is not intended as legal, tax, investment, financial, or other advice.
