Some say that meaningful change happens gradually. Others insist it erupts unexpectedly. This week, we saw that both are true.
Earlier this week, the Wyoming Banking Board voted to approve the application from San Francisco-based crypto exchange Kraken for a Special Purpose Depositary Institution (SPDI) banking charter. Yes, one of the crypto industry’s oldest exchanges has become a bank.
This is a big deal, one that heralds a coming transformation of the crypto asset industry. Market participants and commentators understandably reacted with glee and surprise. Both are warranted, yet both overlook the bigger shift that has been building up for some time, and which will have an even more significant change on how finance functions.
First, to understand the excitement, let’s look at what this means for Kraken.
A SPDI is a bank charter, but it is not a traditional bank…