Crypto exchange Kraken has introduced Krak, a new peer-to-peer payments app designed to facilitate instant money transfers across 110 countries utilizing over 300 assets, including cryptocurrencies, stablecoins, and traditional fiat currencies. This app aims to challenge established payment platforms like Venmo, PayPal, and CashApp by streamlining cross-border payments without requiring users to input bank details or wallet addresses.
The app handles crypto payments on-chain, while fiat transactions are processed internally within Kraken's system, thereby circumventing external banking networks. Kraken highlights the decade of infrastructure development behind this launch and its goal to provide users with more versatile financial tools beyond just trading.
Krak offers dedicated spend accounts and yield-earning opportunities, with users able to earn rewards starting at 4.1% on USDG stablecoin balances and up to 10% on other digital assets. The roadmap includes features like virtual and physical cards and loan services.
This launch coincides with Kraken securing a MiCA license from the Central Bank of Ireland, enabling regulated services throughout the European Economic Area. The app exemplifies Kraken's broader strategy to evolve from a trading platform to a full-service financial ecosystem integrating crypto and fiat functionalities.