On the 27th of September, Bloomberg announced that the leading cryptocurrency exchange, Kraken, has revealed ambitions to enter traditional finance (TradFi) by providing stock trading services as early as 2024. This bold step comes after Kraken successfully applied for and was granted the appropriate regulatory licenses in the Untied Kingdom and the United States through the Financial Industry Regulatory Authority (FINRA).

Through its Spokesperson, Kraken said that the company is ready to expand its offerings beyond digital assets. If it succeeds, it will make the exchange the first exchange to create trading alternatives aside from cryptocurrencies. In a remark by Kraken, the exchange spokesperson said that they are working assiduously to go beyond their present service offerings.

Report has it that as a result of obtaining the necessary regulatory authorizations in the United Kingdom, Kraken can now function inside the pre-existing parameters of conventional finance. A vital stage in its goal to participate fully in the American financial ecosystem is applying for a broker-dealer license in the United States. Kraken’s decision to turn to conventional funding after a significant setback earlier in the year.

Recall that the exchange was forced to stop providing its crypto-staking services and programs to American consumers when the United States Securities and Exchange Commission (SEC) opened an inquiry into its activities. Kraken agreed to pay a $30 million fine as part of a settlement after the SEC voiced concerns about the exchange’s staking services.

Kraken Gets Ready For The Competition Ahead, Hints On New Plan

While commenting on their new service, Kraken assured users that they will benefit from a more diversified portfolio due to the change, which will enable them to trade stocks and cryptocurrencies on a single platform. This tendency is supported by Kraken’s entry into the stock market, which also reflects a larger industry shift toward providing all-inclusive financial services.

While explaining what to expect from its new service, the company explained that its stock trading platform’s performance will depend on variables like the quality of its services, user satisfaction, and regulatory compliance.

Commenting on the recent development, ZyCrpto’s Brenda Ngari opined that Kraken may have a competitive advantage due to its well-established name in the cryptocurrency industry and its dedication to regulatory compliance. This move is believed to compete intensively with other zero-commission trading companies like Public.com and Robinhood.

These companies allow their traders to trade United States-listed cryptocurrencies and equities. The investigation also revealed that the defunct FTX.US once offered stock trading services before its unfortunate demise. However, when asked why they intended to explore the Traditional Finance trading space, the company (Kraken) responded, “We are trying not to put all our eggs in one basket.”