Kraken's Krak App Merges Crypto and Fiat into Unified Financial Ecosystem

Kraken, the cryptocurrency exchange, is accelerating its push to disrupt traditional banking with the latest iteration of its Krak app, introducing a Mastercard-powered debit card, salary deposit capabilities, and high-yield savings tools for users in the UK and EU. The upgrades position Krak as a multi-asset financial platform, blending crypto and fiat functionalities to challenge both legacy banks and neobanks.

The Krak app, launched in June 2025, has already been downloaded over 450,000 times across 130 countries, enabling users to send 400+ cash and crypto assets to 160+ countries. The latest features include a real-time debit card that allows spending from multiple balances-cash, Bitcoin, Ethereum, and Solana-without foreign exchange or monthly fees. For example, a £100 purchase could be split between £80 cash and £20 crypto, with instant conversion based on user preferences. Purchases earn 1% cashback in local fiat or Bitcoin, a perk Kraken executives contrast with competitors' limited or illiquid reward systems.

The expansion is underpinned by Kraken's regulatory footprint in Europe, including a Markets in Crypto-Assets (MiCA) license from Ireland's Central Bank and FCA registration in the UK. The firm also recently secured a $200 million strategic investment from Citadel Securities, valuing it at $20 billion post-money, as it prepares for a potential U.S. IPO.

The has shown significant volatility in trading volume and price movement as the app gains adoption.

Salary deposits via IBAN accounts are now available, enabling UK and EU users to receive wages directly into the app. Funds can be automatically converted to stablecoins, deposited into "Vaults" for yield generation, or used to buy crypto. Vaults, a DeFi-integrated feature, lets users earn up to 10% APY by routing funds to audited lending protocols, with risk tiers tailored to individual profiles. Kraken emphasizes transparency, noting that stablecoins like its GBP stablecoin are backed one-to-one by financial assets.

Kraken executives acknowledge that Krak is not a bank and does not offer FDIC or FSCS deposit insurance. However, they stress that fiat funds are held in segregated accounts at regulated banks, and customer assets are fully reserved. The platform's focus on "borderless, multi-asset" money management aims to appeal to users seeking higher yields, transparency, and control.

Looking ahead, Kraken plans to expand the app to additional markets, introduce credit products, and enhance merchant rewards. The company's aggressive feature rollout underscores its ambition to become a one-stop financial hub for crypto and fiat, leveraging its European regulatory compliance and growing user base to challenge traditional banking models.