Kraken, a popular cryptocurrency exchange, has recently launched its own self-custody wallet for digital assets. This move follows in the footsteps of other major exchanges such as Binance, OKX, Coinbase, Bitget, and Bybit.
The Kraken Wallet, known as the multichain Kraken Wallet, is available to both Kraken clients and non-clients. It serves as a bridge to the decentralized financial system. Currently, the wallet supports assets on eight blockchains, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Optimism, Base, Arbitrum, Polygon, and Dogecoin (DOGE).
According to the developers, the Kraken Wallet app collects the bare minimum amount of data required to function as a wallet. It even refrains from collecting internal app performance analytics. The company emphasizes the wallet’s security features, including mobile biometrics and user password protection. Additionally, the app’s code has been audited by Trail of Bits and is open-source, available on GitHub.
In terms of functionality, the Kraken Wallet supports decentralized finance (DeFi) tokens, nonfungible tokens (NFTs), and interaction with decentralized applications (dApps) through Wallet Connect. The wallet also boasts “24/7/365” customer support.
Eric Kuhn, the product director for Kraken Wallet, stated that the wallet is an investment in the “your keys, your crypto” ecosystem, which is crucial for enabling permissionless financial access.
The rise of self-custody wallets among exchanges can be attributed to the increasing regulatory scrutiny they face globally. Kraken, for instance, recently announced that it is winding down support for the Monero privacy token for customers in Ireland and Belgium. Last year, the exchange suspended support for several stablecoins, including Tether (USDT) and DAI, for its Canadian users.
Self-custody wallets often operate under different rules compared to exchanges, as they do not directly process fiat money transactions. In March, the European Parliament removed a 1,000 euro limit on cryptocurrency payments from self-hosted crypto wallets as part of new Anti-Money Laundering laws. Similarly, a US District Judge ruled that Coinbase Wallet is not considered a broker and is therefore not subject to brokerage rules set by the Securities and Exchange Commission.
In related news, the Trust Wallet iOS app is currently under investigation by US authorities for potential vulnerabilities.