Kraken Disrupts Finance (Again) with Krak: The Peer-to-Peer Crypto Payment App Banks Don’t Want You to Use

Kraken just dropped a grenade in traditional finance’s lap—introducing Krak, a peer-to-peer crypto payments app that cuts out intermediaries like a hot knife through regulatory butter.

No more waiting for bank approvals. No more wire fees. Just crypto moving at the speed of the internet—exactly what the 2008 banking crisis promised but failed to deliver.

Here’s the kicker: Krak’s launch coincides with Wall Street’s latest attempt to 'embrace blockchain' (read: slap decentralized labels on centralized products). Coincidence? Probably not.

One feature traders will love: instant settlement. Because waiting three business days for a check to clear is so 20th century.

Will it trigger mass adoption? Unlikely—most people still think 'DeFi' is a diet plan. But for crypto natives? This could be the Venmo-killer we’ve been waiting for.

Remember: Kraken’s playing chess while banks are still figuring out checkers. Your move, Jamie Dimon.

Kraken Plans Physical And Virtual Cards

The newly introduced app, named Krak, offers users a dedicated spend account and the ability to instantly send and request payments in 300 different assets, which includes various cryptocurrencies and local currencies. 

Unlike traditional cash transfers, which often rely on external banking systems, Kraken will utilize its own internal infrastructure for these transactions, aiming to enhance efficiency and speed. 

In an interview with Reuters, Arjun Sethi, co-CEO of Kraken, emphasized the company’s ability to facilitate cross-border transactions. “We’re able to move money across borders right off the bat, because that’s what we do from a trading perspective,” he noted. 

Sethi highlighted that Kraken has spent over a decade building a “robust system” to comply with money transmitter licenses across various jurisdictions. He pointed out that customers are eager for new options for managing their money, prompting Kraken to expand its offerings.

Looking ahead, Kraken has ambitious plans for Krak, with future developments including the introduction of physical and VIRTUAL cards, as well as advanced services like pay-in-advance loans. 

MiCA License Secured

This expansion follows another significant announcement from the exchange, which recently secured a license under the European Union’s Markets in Crypto-Assets Regulation (MiCA) from the Central Bank of Ireland (CBI).

Sethi remarked on the importance of this licensing achievement, stating, “Securing a license from the Central Bank of Ireland isn’t just about compliance; it’s a powerful signal of Kraken’s commitment to expanding the crypto ecosystem through responsible innovation.” 

The executive noted that being the first global crypto platform to receive authorization from the CBI underscores Kraken’s dedication to building for the long term. “Trust is the most valuable currency in crypto, and it’s something you earn,” he added.

Kraken’s regulatory progress is noteworthy, as the exchange already holds Virtual Asset Service Provider (VASP) registrations in key European countries, including Ireland, Belgium, France, Italy, the Netherlands, Poland, and Spain. 

With a strong foundation in euro-denominated trading, Kraken introduced the first BTC/EUR trading pair in 2013 and has since become one of the most-soughted platform for euro trading.

With the MiCA license now secured, alongside existing MiFID and EMI licenses, the exchange is reportedly preparing to extend its regulated offerings to millions of clients throughout the EU. 

Featured image from DALL-E, chart from TradingView.com