Kraken Custody Launches USDG Rewards Program For Institutional Clients

Kraken Custody has introduced the USDG Rewards Program, a new initiative aimed at institutional and high-net-worth clients. This program allows clients to earn rewards on their USDG holdings, a stablecoin backed by the US dollar, within a secure and regulated environment. The program is designed to provide a compliant and secure way for these clients to generate yield on their digital asset holdings, leveraging the stability and reliability of USDG.

Enrollment in the USDG Rewards Program is seamless. Clients who hold or pledge USDG within Kraken Custody are automatically included in the program once their address is registered. Rewards are distributed monthly and deposited directly into custody vaults, ensuring that clients can capture returns without disrupting their existing workflows. Every payout undergoes compliance and fraud screening, maintaining the regulatory standards required by institutions.

The USDG Rewards Program operates within Kraken Custody’s qualified custody model, backed by Kraken Financial’s Wyoming Special Purpose Depository Institution (SPDI) charter. This structure provides full asset segregation, operational transparency, and regulatory oversight, offering institutional clients a custody solution that meets the highest compliance standards. This framework ensures that the program is protected under Kraken Financial’s SPDI framework, providing an additional layer of security and regulatory compliance.

In addition to the USDG Rewards Program, Kraken Custody has expanded its support to include SOL and XRP for custody. These assets are fully supported for secure, segregated storage within the qualified custody platform, giving institutions and high-net-worth individuals broader access to high-demand assets with the same custody protections they expect across their portfolios. This expansion is part of Kraken Custody's broader strategy to meet the complex needs of institutional and private clients, unlocking new yield opportunities and simplifying operations.

Kraken Custody continues to evolve to meet the needs of its clients. Recent enhancements include a secure custody infrastructure tailored to private clients, a VIP servicing model to simplify onboarding and ongoing management, and integrated support for wealth teams and multi-entity structures. Additionally, Kraken Custody offers TAO staking through qualified custody, allowing clients to access on-chain staking rewards without compromising regulatory alignment. This scalable and compliant solution is designed for institutions seeking yield on tokenized infrastructure assets, minimizing operational overhead with managed workflows.

The launch of the USDG Rewards Program is a significant development in the digital asset industry. It aligns with the growing demand for stable and secure investment options, providing a compliant, bank-backed return tailored for institutional investors. The program's focus on compliance, security, and yield generation is likely to appeal to institutional and high-net-worth clients, who are increasingly looking for stable and secure investment options in the digital asset space. This move is expected to generate revenue for Kraken Custody through various means, including transaction fees and service charges, enhancing its position as a leading player in the digital asset custody space.