Kraken Enhances Brand Presence with Kraken Embed
Kraken, the prominent cryptocurrency exchange, is making strategic moves to enhance its brand presence and increase its market share with a new initiative named Kraken Embed. Brett McLain, the Head of Payments and Blockchain at Kraken, shared insights on this endeavor during a conversation with Decrypt.
Collaboration with bunq
A key highlight from their strategy is the recent collaboration with bunq, a Dutch neobank, which showcases Kraken’s agility in adapting to market opportunities. Initially, bunq had plans to partner with a different provider to integrate crypto services, but they made a last-minute pivot to Kraken.
McLain noted that this rapid transition enabled bunq to launch crypto offerings of over 400 assets in a heavily regulated European market within a few weeks, thus transforming their approach to cryptocurrency.
This rapid integration reflects the efficiency Kraken offers, which can significantly lower the engineering, regulatory, and legal costs for partner firms. Through Kraken Embed, companies in Europe can provide cryptocurrency trading to their customers without needing a license under the EU’s Markets in Crypto Assets Regulation (MiCA).
Market Competition and Strategic Positioning
As Kraken competes with major players like Coinbase and Binance, this new service could help the exchange attract new clientele, particularly as it considers going public later this year. Recent developments at Coinbase, including a data breach that compromised user information, might further influence firms weighing their options between the two exchanges. CEO Brian Armstrong revealed that the breach could cost Coinbase up to $400 million, but many analysts believe this incident will not significantly impede their growth. Kraken, too, has faced its share of security issues, including a bug that previously allowed for balance inflation.
Future Growth and Regulatory Environment
Financial technology firms, such as bunq, are generally more adept at quickly launching features compared to traditional institutions. With significant potential for growth, especially with ongoing regulatory clarifications anticipated under the Biden Administration, Kraken aims to expand its partnerships beyond Europe to regions like the U.S., Canada, Australia, and the UK.
In parallel, Coinbase has also expanded its offerings with a similar crypto-as-a-service (CaaS) platform, recently announcing their partnership with online trading service Webull to utilize its market infrastructure. With increasing competition and evolving regulatory landscapes, both Kraken and Coinbase are positioning themselves as leaders in enabling cryptocurrency adoption.
