This development follows the recent approval of an Electronic Money Institution (EMI) licence for Kraken’s UK entity, Payward Services Ltd, and is expected to support the platform’s expansion of regulated services in the region.
ClearBank will facilitate GBP clearing and payment services for Kraken’s UK-based retail and institutional users. The collaboration includes on and off ramp infrastructure for fiat currency via the UK’s Faster Payments Service (FPS), supported by virtual IBANs. Kraken's client deposits will be held with the Bank of England through ClearBank, adding an additional layer of regulatory-backed security.
Kraken also plans to onboard its European EMI-licensed entity, Payward Ireland Limited, to ClearBank later this year. This step would establish ClearBank as Kraken’s primary clearing provider across the EU, giving clients access to Single Euro Payments Area (SEPA) services. Once operational, this setup will offer both GBP and EUR clearing options for users across the UK and the EU.
The companies aim to launch regional clearing services by early 2025 and have indicated ongoing efforts to expand the partnership’s scope. This may include the introduction of additional financial products and infrastructure capabilities.
Officials from Kraken indicated that robust banking infrastructure remains essential to increasing adoption of digital assets, and cited ClearBank’s technical systems as a contributing factor in their selection. In turn, ClearBank representatives characterised the collaboration as a reflection of its ability to deliver real-time account and payments services in both the UK and Europe.
ClearBank already supports Crypto Facilities Limited, a separate regulated entity within the Kraken Group, by providing client money accounts under the oversight of the UK’s Financial Conduct Authority.
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