Kraken recently announced that it “is the first digital asset company in U.S. history to receive a bank charter recognized under federal and state law, and will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets.”

Kraken obtained a charter from the State of Wyoming to operate the world’s first special purpose depository institution (SPDI). In 2019, Wyoming enacted a law to authorize the chartering of SPDIs as a new form of bank, to facilitate the establishment of financial institutions with the requisite expertise to provide banking services to blockchain innovators.

Kraken currently operates one of the largest cryptocurrency exchanges, and it noted that its SPDI’s banking services “will be seamlessly integrated into the existing exchange services, providing clients better funding infrastructure, a better experience and enhanced regulatory clarity.”

According to Kraken’s blog post, during its first year of operations, the SPDI’s services will include digital asset custody, demand/deposit accounts, and wire transfer and funding services. Kraken noted, over the next few years, it plans to support additional services such as enhanced digital asset custody offerings, services specific to individual accounts and corporate clients, including, with respect to the former, a debit card to spend crypto funds and a complete online and mobile banking suite of products, as well as additional retail, wealth management and treasury services.

Kraken will operate its bank via an online and mobile-first banking model, initially offering accounts to only U.S. residents, with plans to expand globally—as stated in its announcement, “Kraken’s vision is to become the world’s trusted bridge between the crypto economy of the future and today’s existing financial ecosystem.”

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Photo of Jordan M. Horowitz Jordan M. Horowitz

Jordan Horowitz is an associate in the Technology, Media & Telecommunications Group.

She advises clients across various industries, including media, entertainment, sports, sports betting, technology, software, life sciences and financial services.

Jordan has represented operating companies, asset managers, sports leagues and other enterprises…

Jordan Horowitz is an associate in the Technology, Media & Telecommunications Group.

She advises clients across various industries, including media, entertainment, sports, sports betting, technology, software, life sciences and financial services.

Jordan has represented operating companies, asset managers, sports leagues and other enterprises on various commercial matters, including media and sports rights and content distribution agreements, license agreements, joint ventures, strategic partnerships, mergers and acquisitions, and software-as-a-service agreements.

Jordan’s experience includes advising the Big Ten Conference on its media rights agreements with CBS, FOX and NBC; the WTA on the extension and expansion of the partnership between WTA Ventures and Stats Perform; and FanDuel on a first-of-its-kind media and sports wagering partnership in Canada with Bell Media.

Jordan was recently recognized in Variety Magazine’s 2024 Legal Impact Report and was given the Up Next award, which is presented to next-generation lawyers making an impact in entertainment and media law.

Jordan earned her J.D. degree from Fordham University School of Law and her B.A. Dual Degree from Syracuse University, S.I. Newhouse School of Public Communications and College of Arts and Sciences. While at Fordham University School of Law, Jordan was a Notes and Articles Editor of the Fordham Urban Law Journal, a member of the Fordham Moot Court Board and interned for the Honorable Katharine H. Parker of the U.S. District Court for the Southern District of New York.