The Kraken BTC exchange starts exploring stocks as a part of their Super wallet plan as Jesse Powell outlined his plans so let’s read more today in our latest cryptocurrency news.
Companies like Block, eToro, and Robinhood are already offering crypto alongside their stock offerings so it is a matter of time before the crypto brokerages start to offer stocks. This is what Jesse Powell thinks like the CEO of the Kraken BTC exchange. Powell noted that the exchanges are moving towards offering super wallets which allow customers to buy or trade both crypto and NFTs but stocks as well. Powell added:
“I think you’ll see these crypto exchanges all kind of converge on a very similar feature set that becomes a sort of super wallet, omni-product app with NFTs, spot trading, FX, maybe even stock trading, maybe even some more extreme crypto stuff. I think we’ve said before that [stocks] are something that we’re exploring and I think makes sense to do.”
Powell’s perspective is worth noting that since he is involved in crypto, founding Kraken as an exchange in 2011 after running a company that facilitated trading in World of Warcraft gold and other digital items. Kraken is also smaller than Coinbase but the company did quite the trading in the US and other markets and it is the go-to exchange for most professional crypto traders and focuses on trying to brign in more investors and onboard billions of other crypto users. Even as more and more companies offer crypto, Powell added that he is not worried that this will put pressure on the trading fees which are the biggest revenue stream for Kraken and other exchanges:
“I don’t really think there’s like a lot of pressure on trading fees. I still feel like they’re fairly low. I guess they could go to zero. But I don’t feel like, when the price of something is moving 20 percent everyday, I don’t think people bat an eye at 20 basis points.”
He added that most investors are insensitive to fees and that ultimately it will come down to the best UX and being able to do more of what you want. Powell also added that Kraken has been diversifying its revenue streams in crypto and pointed to the company’s upcoming NFT offering and DEFI taking. Powell Is also known for his stance on regulators and pulling Kraken out of New York back in 2015 due to the state’s controversial regulatory framework. He said at the time:
“After all this time, I mean, if we just looked back and did a study of the economic damage done by the BitLicense, I’m sure it would be tremendous—in the billions of dollars. But other states are getting to be more open and welcoming of Bitcoin, and even seeing it as something that can create growth in their economy, something they want to attract to their state.”
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