Kraken, the second-largest American cryptocurrency exchange, has developed its own platform for storing digital assets, catching up to its competitor Coinbase in the market and joining a crowded field that includes prominent players like MetaMask, Ledger, and Trezor.
The brand-new “Kraken Wallet” will be launched on Wednesday and will be available to both Kraken’s current users and non-users, making it possible for them to store and manage their digital assets. The wallet will initially support eight blockchains, including popular ones like Bitcoin and Ethereum, as well as newer ones such as Solana and Dogecoin.
According to a blog post shared exclusively with CoinDesk, the Kraken Wallet will be the first open-source wallet to be offered by a major exchange. This allows developers to access the code and contribute to its improvement. In addition, Kraken will reward developers who identify and report any weaknesses or bugs through their open-source grant program.
The Kraken Wallet prioritizes user privacy and collects only the necessary data to function as a wallet. This ensures that users’ identities and locations are protected from potential external exposure.
Coinbase’s “Coinbase Wallet” has gained a significant following, and other prominent exchanges like Binance and OKX also offer wallet services within their ecosystems.
“For over a decade, Kraken has been advocating for users to take custody of their digital assets. With Kraken Wallet, we have applied the core principles of the crypto space, including user privacy and open-source code,” stated Eric Kuhn, Product Director for Kraken Wallet, in an interview with CoinDesk. “We believe there is tremendous potential in on-chain products and we want to provide users with a wallet that allows them to easily access these opportunities.”
Kraken has expanded its product offerings in recent months.
In November, reports revealed that Kraken was in talks with multiple layer 2 teams to develop its own layer 2 blockchain, following the footsteps of Coinbase’s roll-up chain, Base, which was launched in August.
The collapse of FTX, the cryptocurrency exchange owned by Sam Bankman-Fried, in 2022 highlighted the dangers of storing digital assets on centralized exchanges. This has led to Kraken and Coinbase exploring new business opportunities involving on-chain products.
“The Kraken Wallet represents our commitment to the ‘your keys, your crypto’ ecosystem, which is essential for promoting financial inclusivity. We welcome other wallets but our focus is on developing the best all-in-one crypto wallet that is open-source, secure, and private,” Kuhn explained.
This article has been edited by Bradley Keoun.