Kraken's Game-Changer: Kraken Embed
Global Competition Unfolds as Kraken Announces Bunq Bet, Aiming for Expansion in Cryptocurrency User Base
Kraken's Head of Payments and Blockchain, Brett McLain, revealed in an interview that the crypto exchange is ready to take on tight deadlines to boost its brand and market presence through a revolutionary service called Kraken Embed.
In the interview with Decrypt, McLain shared the story of how Kraken quickly integrated its service into bunq, a Netherlands-based neobank. McLain described it as a last-minute shift, with bunq originally planning to work with another firm for crypto integration. But at the "11th hour," they turned to Kraken. The service went live only a few weeks after bunq agreed to it, necessitating limited amounts of engineering.
McLain pointed out that for a classic neobank like bunq, which had no crypto exposure previously, moving swiftly to offer over 400 crypto assets in Europe was a significant leap. He argued that Kraken's solution could be a game-changer, offering savings on engineering, regulatory, and legal costs. Plus, it allows European firms to offer crypto trading without a license under the EU's MiCA regime.
The ability to attract new users through Kraken Embed could potentially level the playing field for Kraken, as the exchange reportedly considers an initial public offering (IPO) this year. For crypto-curious firms, the choice between Kraken and its competitors takes on new significance, especially in light of recent events such as Coinbase's data breach.
Coinbase experienced a cyberattack where some support agents were allegedly bribed, revealing sensitive user data. Although this incident might not significantly hamper Coinbase's growth, Kraken has been a contender in the crypto market since, including a bug last year that inflated a user's balance artificially.
Speed and agility are key for neobanks and fintech companies, while institutions tend to take a more measured approach. However, under President Trump, the crypto industry anticipates a wave of interest from Wall Street firms as they seek to clarify the rules of the game.
With the integration with bunq, Kraken could potentially tap into the neobank's 17 million user base—far beyond the 13 million people who trust Kraken globally. McLain expects to onboard more firms like bunq this year, potentially expanding into the U.S., Canada, Australia, and the UK.
Coinbase also offers a similar crypto-as-a-service (CaaS) solution, allowing firms to leverage its markets and infrastructure. A recent example involves online trading platform Webull leveraging Coinbase's leading CaaS platform.
In essence, Kraken Embed simplifies crypto access for financial institutions, aiding Kraken's strategic expansion via new institutional partnerships like bunq, reinforcing its regulator-friendly reputation, and positioning itself strongly in a competitive landscape as it gears up for a potential IPO.
Edited by James Rubin
Did You Know?Kraken Embed, launched in April 2025, is a Crypto-as-a-Service (CaaS) solution that enables banks, neobanks, fintech companies, and traditional financial institutions to effortlessly integrate cryptocurrency trading and services into their existing platforms, without needing extensive in-house expertise or infrastructure development. Kraken handles all backend complexities, including trade execution, asset listings, and regulatory licensing, allowing partner institutions to focus on client experience and marketing. This service empowers these institutions to efficiently meet the rising demand for crypto trading, significantly lowering the barriers to entry. Kraken Embed has already helped the exchange capture an increasing crypto adoption in the European market through strategic partnerships like the one with bunq, leveraging the region's regulatory clarity under frameworks like the EU’s Markets in Crypto Assets (MiCA).
- Kraken Embed, launched in April 2025, is a Crypto-as-a-Service (CaaS) solution that simplifies crypto access for financial institutions.
- By partnering with Kraken, financial institutions can integrate cryptocurrency trading and services into their existing platforms without needing extensive in-house expertise or infrastructure development.
- Kraken handles all backend complexities, including trade execution, asset listings, and regulatory licensing, allowing partner institutions to focus on client experience and marketing.
- This service empowers these institutions to efficiently meet the rising demand for crypto trading, significantly lowering the barriers to entry.
- Kraken Embed has already helped the exchange capture an increasing crypto adoption in the European market through strategic partnerships like the one with bunq, leveraging the region's regulatory clarity under frameworks like the EU’s Markets in Crypto Assets (MiCA).
