What happened?
Kraken has launched a new service called Embed, which allows financial institutions to offer crypto trading to their clients via a simple API integration. This service provides access to Kraken’s trading infrastructure and alleviates the burden on these institutions by handling the operational demands of running a crypto marketplace. The first institution to use this service is bunq, a European neobank, with more integrations expected soon.
Who does this affect?
Embed primarily affects financial institutions such as banks, neobanks, and fintech companies who are looking to provide crypto services to their clients without building their own platform from scratch. By using Embed, these institutions can easily integrate crypto trading into their existing offerings, thus expanding their service capabilities. It also affects retail clients of these institutions who will gain easier access to crypto trading options through their existing banking relationships.
Why does this matter?
This development could significantly impact the market by accelerating the adoption of cryptocurrencies in mainstream financial services. By lowering the barriers to entry for traditional financial institutions, Embed enables them to meet the growing consumer demand for crypto services while remaining compliant with regulations. This might drive increased liquidity and participation in the crypto markets, potentially broadening the reach and acceptance of digital assets globally.