Kraken, a leading cryptocurrency exchange, has introduced its own self-custody wallet for digital assets. This move follows in the footsteps of other major exchanges such as Binance, OKX, Coinbase, Bitget, and Bybit. Regardless of whether you are a Kraken client or not, the multichain Kraken Wallet can serve as your gateway to the decentralized financial system, according to the exchange. The wallet currently supports assets on eight blockchains, including Bitcoin, Ethereum, Solana, Optimism, Base, Arbitrum, Polygon, and Dogecoin.
Kraken emphasizes that its wallet app collects only the bare minimum amount of data needed to function as a wallet, without even collecting internal app performance analytics. The company also highlights the security measures of the wallet, including mobile biometrics and user password protection. Additionally, the app’s code has been audited by Trail of Bits and is open-source on GitHub.
In terms of functionality, Kraken Wallet supports decentralized finance tokens, nonfungible tokens, interaction with decentralized applications through Wallet Connect, and provides round-the-clock customer support.
Eric Kuhn, the product director for Kraken Wallet, emphasizes the importance of investing in the “your keys, your crypto” ecosystem, as it is crucial for unrestricted financial access.
The increasing regulatory scrutiny on exchanges has prompted many to venture into the self-custody wallet sector. For instance, on April 11, Kraken announced the discontinuation of support for the privacy coin Monero (XMR) for customers in Ireland and Belgium. Last October, the exchange suspended support for several stablecoins, including Tether (USDT) and Dai (DAI), for its Canadian users.
Self-custody wallets often operate under different rules compared to money transmitters like exchanges, as they do not handle fiat money transactions by default. On March 19, the European Parliament removed a 1,000 euro ($1,080) limit on cryptocurrency payments from self-hosted wallets as part of new Anti-Money Laundering laws. Similarly, on March 28, U.S. District Judge Katherine Failla ruled that Coinbase Wallet is not considered a broker and is therefore exempt from brokerage regulations set by the Securities and Exchange Commission.
In related news, the Trust Wallet iOS app is currently under investigation in the United States for a potential vulnerability.