Kraken pushes Krak as a bank alternative with new cashback debit card, salary deposits and high-yield vaults

Kraken is expanding its Krak money app, aiming to make it a primary alternative to traditional banks and neobanks by introducing a phased rollout of new features. These additions include a Mastercard-powered Krak Card offering 1% cashback in fiat or Bitcoin, which can spend from mixed crypto and fiat balances in real-time without FX fees. The app is also launching 'Vaults' to route idle assets into independently audited DeFi lending protocols for potential high APY returns, and will soon allow UK and EU customers to receive direct salary deposits.

Kraken executives emphasized that Krak is designed to be a borderless, multi-asset product combining spending, sending, and saving, allowing users to use any supported asset for everyday payments. While Krak is not a bank and lacks deposit insurance like FDIC, fiat currency is safeguarded one-to-one in segregated accounts at regulated banks, adhering to their EMI licenses.

The expansion leverages Kraken's European regulatory standing, including its MiCA license from the Central Bank of Ireland. Furthermore, the article notes Kraken's recent corporate developments, including securing an $800 million funding round at a $20 billion valuation and confidentially filing for a U.S. IPO.

(Source：The Block)