Kraken launches institutional arm

Kraken has unveiled Kraken Institutional, a new brand dedicated to offering comprehensive cryptocurrency solutions tailored for institutional clients, including asset managers, hedge funds, and high-net-worth individuals.

Kraken Institutional integrates several of Kraken’s existing services under one umbrella to provide a seamless and enhanced experience for institutional participants in the crypto market.

Spot trading, over-the-counter (OTC) trading, and staking

Operating as a one-stop destination for reliable, scalable, and easily integrated crypto solutions, Kraken Institutional incorporates spot trading, over-the-counter (OTC) trading, and staking.

David Ripley, CEO of Kraken, said: “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”

Tim Ogilvie, the new Global Head of Institutional, said: “Institutional adoption of crypto is growing rapidly, and with the launch of Kraken Institutional we’re poised to grow with this client segment. The recent ETF approval has spurred broader institutional demand; with Kraken Institutional, Kraken is pulling together products and services to meet the needs of institutional clients. Like crypto itself, Kraken Institutional is moving fast: expect more to come in the near future.”

Kraken was founded in 2011 and is one of the leading digital asset exchange operators in the world, offering over 200 digital assets and six fiat currencies and serving more than 10 million traders and institutions globally.

Kraken seeks dismissal of SEC v. Kraken

Still, times are tough for crypto exchanges at the moment and the same goes for Kraken, which was recently blocked in India along with other big crypto names.

A few days ago, Kraken pushed back against the SEC as part of the SEC v. Kraken lawsuit. The defendants issued a dismissal motion challenging the SEC’s grip on speculative investments, marking the exchange’s stance against what it sees as regulatory overreach.

Kraken’s counter comes amid a broader industry backlash against the SEC, with giants like Binance and Coinbase also throwing their hats into the ring with similar dismissal petitions. These moves spotlight the crypto sector’s growing impatience with what they argue is the SEC’s attempt to stretch its regulatory tentacles too far.

The SEC’s lawsuit accuses Kraken of operating unregistered business and mishandling customer assets. However, Kraken’s defense focuses on the absence of fraud or consumer harm claims in the SEC’s accusations, framing the regulatory body’s actions as a “dangerous overstep.”

Kraken’s blog post accompanying the motion claims that the SEC’s logic could absurdly stretch to classify everyday items like sports memorabilia or luxury watches as securities. This stance echoes a broader industry sentiment that the SEC’s current attitude could blur lines to an unreasonable extent, bringing in non-traditional investments under its purview.

The heart of Kraken’s argument lies in the definition of investment contracts and the nature of the cryptocurrencies traded on its platform. The exchange contends that its customers do not enter into a common enterprise with issuers, nor do they expect profits from such issuers’ efforts—points that, in its view, should exempt the traded cryptocurrencies from being labeled as investment contracts under U.S. securities laws.

Kraken also highlights a recent Supreme Court ruling underscoring Congress’s role in legislation over regulatory bodies. This legal principle has become a popular shield for crypto entities facing SEC lawsuits, including Binance, Coinbase, and Terraform Labs.