Home Editor's Pick Kraken Introduces Self-Custody Wallet, Joining Other Major Crypto Exchanges

Kraken Introduces Self-Custody Wallet, Joining Other Major Crypto Exchanges

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Krakenhas joined the growing list of centralized exchanges venturing into the self-custody wallet space with the launch of its own offering, Kraken Wallet. The move follows in the footsteps of industry giants such as Binance, OKX, Coinbase, Bitget, and Bybit, as exchanges increasingly seek to provide users with greater control over their digital assets.

TLDR

Kraken, a major crypto exchange, has launched its self-custody wallet called Kraken Wallet, joining the ranks of other exchanges like Binance, OKX, Coinbase, Bitget, and Bybit.
Kraken Wallet supports coins, tokens, NFTs, and DeFi assets on eight blockchains, including Bitcoin, Ethereum, Solana, Optimism, Base, Arbitrum, Polygon, and Dogecoin.
The wallet prioritizes user privacy and security, collecting minimal user data, shielding IP addresses, and featuring mobile biometrics and user password protection.
Kraken has released the wallet’s open-source code on GitHub to strengthen its security through third-party review and offers a grant program for developers who find vulnerabilities.
The launch of Kraken Wallet comes amid a global regulatory tightening on exchanges’ activities, as self-custody wallets are often not subject to the same rules as money transmitters.

Kraken Wallet, which is now available to both Kraken clients and non-users alike, supports a wide range of assets across eight blockchain networks, including Bitcoin, Ethereum, Solana, Optimism, Base, Arbitrum, Polygon, and Dogecoin.

This multi-chain functionality allows users to manage their coins, tokens, non-fungible tokens (NFTs), and decentralized finance (DeFi) positions from a single, user-friendly interface.

One of the key features setting Kraken Wallet apart from its competitors is its strong emphasis on user privacy and security.

The exchange has stated that the wallet “collects the absolute minimum amount of data required to function,” with no internal app performance analytics being collected. User activity is proxied through Kraken’s own infrastructure, shielding users’ IP addresses and preventing potential exposure of their identity and location information.

In terms of security, Kraken Wallet boasts mobile biometrics and user password protection, while its code has undergone auditing by the respected security firm Trail of Bits.

To further bolster the wallet’s security and transparency, Kraken has taken the unprecedented step of releasing the app’s code as open-source on GitHub. This move makes Kraken Wallet the first self-custody wallet from a major exchange to embrace open-source principles, allowing developers to access, review, and contribute to the code.

Kraken has also committed to paying developers who identify vulnerabilities through its open-source grant program, incentivizing the community to help improve the wallet’s security.

The launch of Kraken Wallet comes at a time when exchanges are facing increased regulatory scrutiny worldwide.

Many jurisdictions are tightening their grip on the activities of centralized exchanges, prompting these platforms to explore the self-custody wallet sector as a means of diversifying their offerings and catering to users’ growing demand for greater control over their assets.

Self-custody wallets often fall outside the scope of regulations that apply to money transmitters, such as exchanges, as they do not natively process fiat money transactions.

Recent regulatory developments have highlighted the distinction between exchanges and self-custody wallets. In March 2024, the European Parliament scrapped a proposed 1,000 euro limit on cryptocurrency payments from self-hosted crypto wallets as part of new Anti-Money Laundering laws.

Similarly, a U.S. District Judge ruled that Coinbase Wallet was “not a broker” and, therefore, not subject to brokerage rules set forth by the Securities and Exchange Commission.

As Kraken continues to build out its suite of products, the introduction of Kraken Wallet represents a positive step in the exchange’s efforts to empower users and promote the “your keys, your crypto” ethos that is central to the cryptocurrency space.

The post Kraken Introduces Self-Custody Wallet, Joining Other Major Crypto Exchanges appeared first on Blockonomi.

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