Kraken Debuts Self-Custody Wallet for Digital Assets

Kraken, a prominent cryptocurrency exchange, has introduced its self-custody wallet for digital assets, joining other major players in the crypto industry such as Binance, OKX, Coinbase, Bitget, and Bybit.

The multichain Kraken Wallet is designed to serve as a gateway to the decentralized financial system, accessible to both Kraken clients and non-clients alike. Currently, the Kraken Wallet supports assets on eight blockchains, including Bitcoin, Ethereum, Solana, Optimism, Base, Arbitrum, Polygon, and Dogecoin.

Kraken Commits to User Privacy

Kraken emphasizes its commitment to user privacy by stating that the wallet collects only the minimum amount of data necessary for its functionality. Even internal app performance analytics are not collected. 

User activity is routed through Kraken’s infrastructure to shield IP addresses, preventing the exposure of identity and location information.

“User activity is proxied through Kraken’s own infrastructure, shielding your IP address and preventing your identity and location information from potential external exposure,” said Kraken.

Security is a Top Priority

Security is a top priority for the Kraken Wallet, with features such as mobile biometrics and user password protection. The wallet’s code has undergone auditing by Trail of Bits, and it is open-source, available on GitHub for public review.

In terms of functionality, the Kraken Wallet supports decentralized finance tokens, non-fungible tokens, and interaction with decentralized applications through Wallet Connect. Additionally, it offers customer support around the clock, every day of the year.

Kraken Prioritizes Self-Custody

Eric Kuhn, product director for Kraken Wallet, emphasized the importance of self-custody wallets in enabling permissionless financial access, highlighting Kraken’s investment in empowering users to control their own keys and crypto assets.

The move towards self-custody wallets by exchanges comes amid increasing regulatory scrutiny worldwide. In a recent announcement, the exchange revealed the discontinuation of support for the Monero privacy coin for customers in Ireland and Belgium. 

Self-Custody Wallets

Last October, the exchange suspended support for several stablecoins, including Tether and Dai, for Canadian users.

Self-custody wallets often operate under different regulatory frameworks compared to exchanges, as they do not typically process fiat money transactions. 

Recent regulatory developments, such as the European Parliament’s removal of a 1,000 euro limit on cryptocurrency payments from self-hosted wallets, and a U.S. court ruling affirming Coinbase Wallet’s status as not subject to brokerage rules, underscore the evolving regulatory landscape surrounding cryptocurrency transactions and custody.