Kraken is taking another step in reinforcing its position as a major player in institutional crypto services. The company has announced the international expansion of its custody offering, bringing the solution to institutional clients in the United Kingdom and Australia. This marks the first time Kraken Institutional’s crypto custody service reaches beyond the United States since its initial launch.
Through Kraken Financial, the platform now provides qualified custody services directly to eligible firms in these two countries. The custody model follows the same operational structure previously implemented in select U.S. states, with one core principle remaining intact: client assets are kept entirely segregated from the broader Kraken platform and are available for withdrawal at any time.
The decision to enter the UK and Australian markets stems from both regions’ maturing institutional crypto sectors and Kraken’s existing operational footprint there. According to Kraken representatives, these jurisdictions were selected because of their “established institutional crypto markets” and the presence of “familiar infrastructure that aligns with our regulatory and operational frameworks.”
The rollout is aimed at addressing growing demand among institutions for reliable custody services that not only meet stringent compliance standards but also maintain robust security. Kraken’s offering is designed to support the needs of asset managers, hedge funds, family offices, and other financial institutions seeking secure, regulated access to digital assets. Although integrated with Kraken’s core platform, the custody infrastructure ensures full asset separation, thereby maintaining operational independence while adhering to security best practices.
Representatives from Kraken Financial emphasized that the firm’s experience operating under state-level banking regulations in the U.S. provides a regulatory backbone for the custody model. “Our regulatory framework ensures rigorous oversight and high standards of compliance, which we will apply equally to clients in the UK and Australia,” a Kraken Financial spokesperson said. The move reflects a broader trend in the crypto space, where institutional actors are increasingly demanding infrastructure that mirrors the safeguards of traditional finance.
As of now, Kraken Custody supports Bitcoin, Ethereum, and USD Coin on the Ethereum blockchain, with plans to expand the list of supported assets later this year. These assets were chosen based on institutional demand and usage across markets.
Kraken has also made key developments in its banking partnerships to support its growing institutional services. Recently, it named ClearBank as its primary banking partner in the United Kingdom. This decision followed the UK’s regulatory approval of Kraken’s subsidiary, Payward Services Ltd, to operate as an Electronic Money Institution. The new banking partnership is expected to strengthen Kraken’s capacity to deliver regulated financial services and accelerate its expansion in the region.
This move by Kraken underscores the increasing institutional appetite for crypto infrastructure and positions the firm as a reliable provider in a landscape that continues to evolve. As regulatory clarity increases globally, firms like Kraken are setting the pace by marrying compliance with innovation in their product offerings.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist