Crypto Currents: Kraken launches global money app

As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week’s top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.

EXCHANGE TRANSPARENCY BOOSTED: In a major move towards transparency, the crypto exchange Bitget recently released its June Proof-of-Reserves report. The audit reveals the company holds 199% of all customer funds, meaning for every dollar a user has on the platform, Bitget holds nearly two dollars in reserve. This includes a staggering 429% reserve ratio for Bitcoin (BTC). The long-standing exchange BTCC also released its data, showing a healthy total reserve ratio of 135%. This industry-led push for verifiable proof-of-reserves is a direct answer to the collapses of the past, aiming to build a more resilient and trustworthy market for users.

NASDAQ PARTNERS FOR INSTITUTIONAL EFFICIENCY: Nasdaq announced a major partnership with the Canton Network to upgrade its Calypso platform, a system used by the majority of the world’s largest banks. This integration uses blockchain technology to solve a massive, $1T problem for institutions: collateral inefficiency. It will allow banks and investment firms to manage their assets and collateral in real-time, twenty-four-seven, across both traditional and digital markets. This move, made in partnership with quant trading firms like QCP and Primrose Capital Management, aims to significantly accelerate institutional adoption by making digital assets compatible with Wall Street’s stringent risk management standards, unlocking unprecedented liquidity and efficiency.

EUROPE ADVANCES REGULATORY CLARITY: The company Simplify Labs announced a key partnership with three major European fintech law firms. Their goal is to create a streamlined, one-stop shop for crypto businesses to launch in full compliance with Europe’s landmark Markets in Crypto-Assets regulation, or MiCA legislation. This is significant because MiCA provides a clear, comprehensive legal framework for the entire European Union. By creating a ready-made compliant toolkit, this initiative aims to make Europe one of the most attractive regions for crypto entrepreneurs and established companies, reducing regulatory hurdles.

BITCOIN LAYER ONE INNOVATION: A new challenge has been launched by a project called Torram to bring institutional-grade financial applications directly to Bitcoin’s Layer One. For years, complex applications like lending platforms, decentralized exchanges, and stablecoins have typically operated on other blockchains like Ethereum. This new initiative aims to change that, offering 3M of its tokens to developers who can build these applications natively on Bitcoin itself, a move that could unlock trillions in value and profoundly transform what the original blockchain is truly capable of, broadening its utility.

KRAKEN LAUNCHES GLOBAL MONEY APP: Kraken, a major global cryptocurrency exchange, has launched ‘Krak,’ their ambitious new all-in-one global money app, built entirely on crypto infrastructure. Kraken co-CEO Arjun Sethi states that Krak aims to fix the ‘broken’ traditional financial system, plagued by slow, costly, and opaque transactions. With Krak, users can instantly send and receive funds across over 160 countries using unique ‘Kraktags,’ and seamlessly transact across more than 300 assets – including fiat, crypto, and their stablecoin, USDG (USDG), which offers up to 4.1% APR. Built on permissionless blockchains, Krak emphasizes fast, borderless, and open financial services, eliminating traditional fees and delays.

CRYPTO STOCK PLAYS: Publicly traded companies in the space include Bit Digital (BTBT), Coinbase (COIN), Core Scientific (CORZ), Greenidge Generation (GREE), Mara Holdings (MARA), Strategy (MSTR), Riot Platforms (RIOT) and TeraWulf (WULF).