Kraken has launched “Krak,” a peer-to-peer payment app designed to facilitate both fiat and crypto transfers across borders. The move marks a major pivot for the crypto exchange as it expands into more traditional financial services. Through the Krak app, users can send funds using just a phone number or email, regardless of geographic boundaries—an effort Kraken says aims to make money “move as easily as information.”
The app also introduces a yield-generating wallet for over 20 supported crypto assets, allowing users to earn interest while holding funds. Kraken’s co-CEO Arjun Sethi framed the launch as a response to outdated financial systems that limit access and efficiency, especially for cross-border transactions. The company cited an $8 billion market size for U.S. remittances alone in 2024, signaling strong commercial potential for Krak’s global functionality.
Entering the Fintech Battlefield
With Krak, Kraken is positioning itself against mainstream money transfer platforms like Cash App and Venmo. Both services dominate peer-to-peer payments in the U.S. but offer limited crypto capabilities. Cash App boasted 57 million monthly active users in Q1 2025 and generated nearly $4 billion in revenue. Venmo, owned by PayPal, had over 68 million users as of last year.
Kraken’s strategy appears to center on merging crypto-native infrastructure with the user-friendly experiences consumers already expect from fintech apps. The key differentiator lies in its dual support for fiat and digital assets, alongside an integrated earning feature that could entice crypto holders and newcomers alike.
The initiative is also a clear response to growing competition in the crypto-fintech convergence space. Platforms like Coinbase and Robinhood have been rolling out similar multi-asset services, and traditional players like PayPal are gradually expanding their crypto offerings.
Speaking to CoinrockMedia on Monday, Matthew Howells-Barby, the VP of Growth at Kraken explained the company’s approach to the fintech business:
“We do see ourselves competing with the Wise, the Robinhoods, the Revoluts of the world,” he said.
“They’ve all done stuff really well… but we want to stay true to some of our roots in kind of pioneering down new paths and maintaining a focus on the core mission.”
This focus on originality, decentralization and Kraken core mission are the key drivers in the build of the Krak app. Howells-Barby explains further;
“No one’s gonna know what chain they’re on, right? It’s gonna be Extracted away,” he said
“It’ll be the same with stable coins. You know, you’re gonna make a payment and not really know what you’re gonna make that through.”
Broader Strategy Signals IPO Intentions
Krak isn’t just another product launch—it’s part of a larger evolution for Kraken as it broadens its user base and product suite ahead of a potential IPO in 2026. Since appointing Arjun Sethi as co-CEO, the company has made several bold moves, including the May announcement of tokenized stock trading through a partnership with Banked, aimed at non-U.S. users.
Kraken is also preparing itself for greater regulatory scrutiny. Sethi recently emphasized that an IPO would only proceed once the U.S. regulatory landscape offers clearer guidance on digital assets. Still, the company is bullish on its trajectory, reporting $1.5 billion in 2024 revenue—a figure driven by the broader crypto market rally and increasing adoption of blockchain-based financial tools.
The launch of Krak positions Kraken as a cross-market competitor—part crypto exchange, part fintech disruptor. As regulatory clarity improves and demand for integrated digital finance rises, Kraken may be well-placed to secure its place in the next wave of financial innovation.
Quick Facts
- Kraken launched Krak, a global P2P app for fiat and crypto transfers.
- The app includes yield-generating wallets, supporting over 20 cryptocurrencies.
- Krak targets Cash App and Venmo’s market, offering broader asset support.
- Kraken eyes a 2026 IPO, pending clearer digital asset regulation.
