Kraken Upgrade Krak App to Challenge Traditional Banks

Kraken has recently upgraded its money app Krak, to challenge a real alternative to banks. The app initially started as a tool for sending money locally and internationally for free. 

Now, Kraken is adding a debit card, salary deposit options, and ways to earn from savings. The goal is to give users one app for spending, saving, and investing in both cash and crypto.

Krak Adds Debit Card and New Features

Krak was launched in June, and it has since seen massive adoption. Kraken reported that the app has been downloaded more than 450,000 times across over 130 countries. Users can send over 400 cash and crypto assets to more than 160 countries and earn yields of up to 3.6% on eligible holdings.

Kraken is now expanding Krak from a starter payments app into a multi-asset platform. The company is now adding a Mastercard debit card for UK and EU users. The card can spend from multiple balances, including cash and crypto, all in real time. 

Users also earn 1% cashback on every purchase, in local money or Bitcoin. At the same time, Krak is introducing a feature called Vaults. This feature is designed to let users earn interest on money stored in the app by sending it to secure decentralized finance (DeFi) protocols. 

Users can choose their risk level, move funds in and out easily, and potentially earn over 10% interest. Kraken leaders say Vaults aim to offer better rewards than regular banks.

Krak App to Support Salary Deposits and Full Money Management

Krak will soon let UK and EU users receive salaries directly into the app. Each user will get a named account with an IBAN for easy deposits. In the future, money could automatically be turned into stablecoins, sent to Vaults, or used to buy crypto. 

This comes as stablecoins offer an additional layer of transparency to transactions. Furthermore, users will be able to pay bills and send money locally or internationally, making Krak closer to a full bank account. 

Meanwhile, Kraken executives made it clear that Krak is not a bank. The app does not offer deposit insurance like FSCS or FDIC, but all customer funds are held safely in separate accounts at regulated banks. Looking ahead, Kraken plans to add credit products, more card options, merchant rewards, simplified onboarding, and support for additional assets. 

Krak Secures $200M Investment Amid U.S. IPO Plans 

Krak is using its European regulatory licenses to expand its services. These include a Markets in Crypto-Assets (MiCA) regulation license from the Central Bank of Ireland and FCA registration in the UK.

The company also recently received a $200 million strategic investment from Citadel Securities. This brings its total funding in the past two months to $800 million at a $20 billion post-money valuation. The company is also taking a measured approach towards a potential U.S. IPO after recently filing a draft S-1 registration statement with the SEC.