Kraken's Krak App Launches Cashback Debit Card and Salary Deposits to Rival Traditional Banks

Kraken has initiated a phased rollout of new features for its Krak money app, including a cashback debit card, salary deposit options, and high-yield vaults, positioning it as a comprehensive alternative to traditional bank accounts and neobanks. The firm aims to enable customers to "leave their bank behind and go all-in on crypto" while maintaining access to everyday payments and savings.

Launched in June, the Krak app has already been downloaded more than 450,000 times across over 130 countries, facilitating the transfer of over 400 cash and crypto assets to more than 160 nations, with yield opportunities of up to 3.6% on eligible assets. Kraken executives, including Global Head of Consumer Mark Greenberg, emphasized the app's goal to become "the money app you use by default," integrating spending, sending, and saving into a single, borderless product.

The Mastercard-powered Krak Card debuts in the UK and EU, with expansion to other markets planned. It allows real-time spending from multiple balances without foreign exchange or monthly fees, enabling splits between cash and crypto assets like Bitcoin, Ethereum, or Solana at instant conversion rates. All purchases earn 1% cashback, payable in local fiat or Bitcoin, with no caps or hidden fees, and the card supports global ATM use without charges.

Additionally, the new Vaults feature directs funds into independently audited DeFi lending protocols managed by curators such as Chaos Labs and Sentora, targeting returns of up to 10+% APY based on user risk profiles. Salary deposits will provide named accounts and IBANs for direct wage payments in the UK and EU, with future automations for instant conversion to stablecoins or Bitcoin investments.

Kraken underscored its regulatory compliance, holding a Markets in Crypto-Assets Regulation license from the Central Bank of Ireland and FCA registration in the UK, with fiat funds safeguarded in segregated accounts. The firm recently secured a $200 million investment from Citadel Securities, boosting its valuation to $20 billion, and has confidentially filed for a U.S. IPO.