The U.S.-based cryptocurrency exchange Kraken has reportedly partnered with regulated British full-service clearing bank ClearBank to provide pound-denominated services for clients in the United Kingdom.
ClearBank has broadened its involvement in the cryptocurrency sector by collaborating with Kraken to deliver GBP clearing services to the exchange’s customers in the U.K., following Kraken’s recent acquisition of an EMI license through its Payward Services entity.
As detailed in a press release from April 3, ClearBank will serve as the main banking partner for Kraken in the U.K., having previously assisted Crypto Facilities Limited, an FCA-regulated investment arm of the Kraken Group, with managing client funds.
John Salter, ClearBank’s chief customer officer, stated that both organizations share “similar ambitious long-term growth plans,” although he refrained from disclosing further specifics.
ClearBank is no stranger to the crypto landscape; in 2018, it collaborated with London Block Exchange, the first dedicated cryptocurrency exchange in the U.K., allowing local customers to trade digital currencies without having to transfer money abroad.
This collaboration arrives as Kraken explores the possibility of raising up to $1 billion in debt financing in anticipation of a potential IPO. As previously reported, the exchange is in discussions with major financial firms like Goldman Sachs and JPMorgan Chase regarding this initiative. The debt raise, potentially as modest as $200 million, is intended to support Kraken’s growth objectives rather than cover ongoing operational expenses.