Kraken, a well-known cryptocurrency exchange, has officially launched "Krak," a new peer-to-peer (P2P) payment system designed to facilitate both crypto and fiat transactions globally. This move signifies Kraken's ambition to broaden its financial service offerings beyond cryptocurrency trading and directly compete with established payment platforms like Cash App and Venmo.
The Krak app is designed to enable users to send and receive funds across borders in more than 160 countries. It supports over 300 different assets, including cryptocurrencies, stablecoins, and fiat currencies, making it a versatile tool for managing finances in the modern era. A key feature of the app is the ability to send funds instantly and affordably to other Krak users, utilizing personalized payment IDs called "Kraktags," eliminating the need for bank details or crypto wallet addresses.
According to Kraken, the app will offer users spend and earn accounts, promising yield generation on over 20 digital assets. At launch, eligible users can earn up to 4.1% rewards on USDG stablecoin balances, with additional earning opportunities across 20+ digital assets up to 10%. This feature aims to provide users with opportunities to grow their balances while seamlessly managing their everyday purchases.
Kraken's co-CEO, Arjun Sethi, emphasized the company's vision for the app, stating, "We built and launched the Krak app because the financial system has been stuck in the past, and we think it's time to do something about it. We believe that basic financial services should be universally accessible, and that money should move as easily as information does."
The launch of the Krak app comes as Kraken eyes a potential initial public offering (IPO) in 2026. The company reported $1.5 billion in revenue in 2024, driven by renewed investor interest in digital assets. Sethi has indicated that a listing would depend on greater regulatory clarity around digital assets.
The Krak app differentiates itself from competitors like PayPal and Cash App through its asset flexibility. Unlike these platforms, Krak treats fiat and crypto interchangeably, allowing users to seamlessly convert between different currencies and assets within the app. This feature is particularly beneficial for markets with volatile currencies or capital controls, enabling users to conduct transactions without incurring intermediary fees.
In the future, Kraken plans to introduce physical and virtual Krak cards, enabling seamless spending at millions of merchants worldwide, both online and in-store, using fiat currencies and crypto assets within the Krak app. The company also intends to offer a range of pay-in-advance services, including lending, loans, and credit card programs.
Kraken's entry into the peer-to-peer payment market represents a strategic move to expand its reach and appeal to a broader range of users. By combining traditional payment services with robust crypto capabilities, Kraken aims to capture a share of the rapidly expanding cross-border payments market.
