Bybit-backed crypto exchange Kraken is taking aim at mainstream fintech players with a bold new product—an international payment and remittance app called Krak.
In a major push to expand beyond its crypto trading roots, Kraken has announced plans to launch Krak, a financial services app designed to enable seamless, low-cost transfers of both digital and fiat currencies across borders. The platform, which will initially operate within a semi-closed ecosystem, is positioned as a direct competitor to major fintech players like PayPal’s Venmo, Block Inc.’s Cash App, and neobank Revolut.
A Next-Gen Fintech App for Global Transfers
According to a statement released Thursday, Krak will allow individuals and businesses to send and receive over 300 assets globally with minimal or no transaction fees. While the system will initially permit transfers only between Krak users or withdrawals to users’ personal bank accounts, it promises a simplified, borderless payment experience for a wide user base.
With this move, Kraken is looking to diversify its business model and position itself as a holistic financial services provider ahead of a highly anticipated initial public offering (IPO) slated for early next year.
Debit Cards and Credit Services Incoming
Kraken Co-Chief Executive Officer Arjun Sethi revealed in an interview that both physical and virtual debit cards linked to Krak accounts will be launched in the coming weeks. These will allow users to spend their funds directly, much like they would with traditional banking apps.
In addition to basic payments, Kraken is also developing a suite of credit products under the Krak brand, including loans and credit cards. These offerings aim to make Krak a one-stop financial platform catering to the daily spending and borrowing needs of users—crypto-savvy or otherwise.
“One of the reasons why I invested in Kraken and joined the company was to help create more evenly distributed financial products,” said Sethi, who also serves as chairman of Tribe Capital Partners, a venture capital firm focused on disruptive innovation.
Competing in the Fintech Space
The launch of Krak marks Kraken’s deeper push into the competitive world of financial technology. The crypto exchange has already begun to blur the lines between digital assets and traditional finance. In April, Kraken introduced commission-free trading for U.S.-listed stocks and exchange-traded funds (ETFs), following its $1.5 billion acquisition of retail futures platform NinjaTrader.
This pivot reflects a broader trend among crypto firms: diversifying into fintech territory. Coinbase, for instance, recently launched an e-commerce payments platform in collaboration with Shopify, allowing merchants to accept the USDC stablecoin. Similarly, Circle, another major player in the stablecoin space, launched a new cross-border payments network in April.
Reward System to Drive Engagement
Krak isn’t just about transferring money. The app will also include incentives for holding digital assets. Users can earn up to 10% in rewards on select tokens. For example, holders of USDG—a stablecoin issued by the Global Dollar Network consortium, in which Kraken is a member—can earn up to 4.1% in annual rewards.
This rewards structure adds another layer of appeal for users who are already engaged with crypto, offering them more ways to grow their assets while using the app’s payment and transfer features.
Monetizing Through Liquidity, Not Fees
Sethi emphasized that Krak will not charge users transaction fees or lend against customer assets—a critical point of differentiation from traditional banking and fintech models. Instead, he plans to leverage Kraken’s deep liquidity and trading infrastructure to offer these services at no cost to users.
“I’m able to leverage my exchange and my liquidity to be able to offer these products to a larger distribution base,” Sethi explained. He compared the model to YouTube’s early strategy of offering free content and monetizing through alternative means.
“I want to make this free to every customer worldwide for this very specific value proposition,” he added. “There’s no reason why we can’t.”
A Strategic Move Ahead of Kraken’s IPO
As Kraken prepares to go public, Krak serves as a strategic play to broaden its appeal beyond the crypto niche and capture users looking for fast, affordable financial tools. With traditional fintech firms grappling with rising operational costs and regulatory scrutiny, Kraken may be well-positioned to gain market share by offering zero-fee, crypto-integrated services at scale.
If successful, Krak could become a defining product not just for Kraken, but for the future of fintech as it merges with blockchain.
