Kraken Launches Krak App for Free Global Payments Using Fiat and Crypto

Crypto exchange Kraken has launched Krak, a global money application designed to facilitate free local and international payments using both fiat currency and cryptocurrency. The app aims to address persistent issues within traditional financial systems, which Kraken co-CEO Arjun Sethi described as slow, costly, and opaque. Kraken cites outdated infrastructure, like decades-old banking software and batch processing, leading to delays of several days for transfers and high fees, especially for remittances often exceeding 6%.

Krak, built on blockchain technology, enables users to send funds instantly to over 160 countries using unique “Kraktags” identifiers at no cost. Users can hold and transact across more than 300 assets – including fiat, crypto, and stablecoins – within a single account. The app also offers yield, such as 4.1% APR on its USDG stablecoin. Future features include physical and virtual debit cards for global spending and collateral-based lending against holdings. Kraken emphasizes Krak’s use of public blockchains for real-time settlement, eliminating intermediaries to reduce fees and latency. Kraktags replace complex account numbers or wallet addresses.

Kraken positions Krak as a foundational step towards a faster, borderless, and more accessible financial system, contrasting it with traditional finance’s exclusion of over 1.4 billion unbanked adults and high transaction costs even in advanced economies. Sethi stated Krak is the beginning of a long journey to “remove friction from finance” and build what comes after traditional banks. The app enters a competitive field dominated by established players like Venmo, Zelle, Paypal, Revolut, Wise, Stripe, and Cash App.

Kraken has launched a peer-to-peer payments app called Krak, marking its entry into the global payments space. The app allows users to send and receive funds in both cryptocurrency and regular currencies, positioning Kraken to compete with established payment platforms. Krak offers instant transfers and yields of up to 4.1% on USDG and up to 10% on other cryptocurrencies, combining the benefits of a traditional bank account with those of a crypto wallet. This move by Kraken signifies a strategic expansion into the financial services sector, leveraging its existing user base and technological infrastructure to provide a seamless and efficient payment solution. The app's features, including no-fee transactions and high-yield savings, are designed to attract both individual users and businesses, further solidifying Kraken's presence in the competitive payments landscape.