Kraken Launches Krak: A New Peer-to-Peer Crypto Payment App

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The world of digital finance is evolving rapidly, and Kraken, one of the leading cryptocurrency exchanges, has just taken a bold step forward with the launch of Krak — a new peer-to-peer (P2P) payment application designed to bridge traditional finance and the crypto economy. This innovative platform enables users to send and receive money instantly using both cryptocurrencies and fiat currencies, marking a significant expansion in Kraken’s service offerings.

While cryptocurrency investments carry high risk and may result in partial or total loss of capital, this article is intended solely for informational and educational purposes and does not constitute financial or investment advice.

Introducing Krak: A Unified Global Payment Experience

Kraken’s newly launched app, Krak, is engineered to provide seamless cross-border transactions across more than 100 countries. Unlike traditional banking systems that rely on third-party financial infrastructure, Krak operates entirely on Kraken’s proprietary network. This internal architecture enhances transaction speed, reduces dependency on external institutions, and improves overall efficiency.

Users gain access to a dedicated spending account within the app, allowing instant transfers in over 300 digital assets as well as local fiat currencies. This dual-currency functionality positions Krak as a direct competitor to mainstream payment platforms like PayPal, Venmo, and Block’s Cash App — but with the added advantage of deep integration into the crypto ecosystem.

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Built for Speed, Security, and Scalability

By leveraging its own transactional infrastructure, Kraken eliminates common bottlenecks associated with bank intermediaries. Transactions that once took days can now settle in seconds, offering real-time liquidity for individuals and businesses alike.

Arjun Sethi, Co-CEO of Kraken, emphasized the strategic importance of this move in an interview with Reuters: “We’ve already been facilitating cross-border trades on the trading side, so we can quickly extend that capability to payments.” He noted that years of regulatory compliance work and system development have enabled Kraken to securely manage customer funds while expanding into broader financial services.

This foundation has allowed Kraken to pursue ambitious goals beyond trading — including the planned integration of physical and virtual debit cards into the Krak app. These cards will let users spend their crypto holdings directly at merchants worldwide, converting assets to local currency in real time.

Expanding Financial Services: From Payments to Credit

Krak isn’t just about sending money — it’s the cornerstone of Kraken’s vision for a comprehensive financial ecosystem. Future updates are expected to introduce advanced features such as:

These services aim to transform Kraken from a crypto exchange into a full-service digital bank alternative — particularly appealing to the unbanked and underbanked populations who rely on mobile-first solutions.

The company’s long-term roadmap reflects a clear intent: to become a one-stop financial platform where users can trade, save, spend, and borrow — all within a single, secure environment.

Regulatory Milestone: MiCA License Secured

Kraken’s global ambitions are supported by strong regulatory compliance. Recently, the company received official approval from Ireland’s Central Bank (CBI) under the European Union’s Markets in Crypto-Assets (MiCA) regulation. This makes Kraken the first global crypto platform to obtain a MiCA license — a significant achievement that underscores its commitment to responsible innovation.

Arjun Sethi highlighted that this milestone goes beyond mere compliance: “It reflects our vision of growing the crypto ecosystem in a sustainable and trustworthy way.” He also stressed that trust is not built overnight but earned over time through transparency, security, and adherence to legal standards.

Kraken is already registered as a Virtual Asset Service Provider (VASP) in multiple European countries, including Belgium, France, Italy, the Netherlands, Poland, Spain, and Ireland. With a long history of euro-based trading — having launched the first BTC/EUR trading pair in 2013 — Kraken has solidified its presence in Europe’s digital asset market.

Now, with MiCA added to its existing MiFID and Electronic Money Institution (EMI) licenses, Kraken is well-positioned to scale its services across the EU while maintaining full regulatory alignment.

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FAQ: Your Questions About Krak Answered

Q: What is Krak by Kraken?
A: Krak is a peer-to-peer payment app launched by Kraken that allows users to send and receive money globally using both cryptocurrencies and fiat currencies through a dedicated spending account.

Q: In which countries is Krak available?
A: The app supports transactions in over 100 countries, with expanded availability expected across Europe following Kraken’s MiCA license approval.

Q: Does Krak use traditional banking networks?
A: No. Krak operates on Kraken’s internal system rather than relying on external banking infrastructure, enabling faster and more efficient transfers.

Q: Will Krak offer physical or virtual cards?
A: Yes. Kraken plans to integrate both physical and virtual debit cards into the Krak app, allowing users to spend their digital assets at merchants worldwide.

Q: Is Kraken regulated in Europe?
A: Yes. Kraken holds a MiCA license from Ireland’s Central Bank and is registered as a VASP in several EU countries, making it one of the most compliant global crypto platforms.

Q: Can I use Krak for business payments?
A: While currently focused on individual users, the infrastructure supports potential future business applications such as payroll distribution and vendor payments in crypto or fiat.

The Road Ahead for Kraken and Digital Finance

With the launch of Krak and its landmark MiCA licensing achievement, Kraken is no longer just a crypto exchange — it's becoming a major player in the future of decentralized finance. By combining regulatory rigor with user-centric innovation, the company is setting a new benchmark for what a crypto-native financial platform can achieve.

As adoption grows and technology advances, services like Krak could redefine how people interact with money — breaking down borders, reducing fees, and empowering users with greater control over their finances.

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This strategic evolution highlights Kraken’s ambition to lead not just in trading volume, but in building accessible, compliant, and scalable financial tools for the next generation of global users.