CJMYKraken is one of the biggest competitors to Coinbase, the largest crypto trading platform in the USA, and it has now launched a mobile crypto trading app in a bid to get ahead of Coinbase, as well as increase industry penetration and adoption across the country.
While the USA may be the world’s largest cryptocurrency market, there are still many people across the country who are interested in this industry but have not yet invested money into any tokens or platforms. Part of the reason for this is a lack of information, while another big issue is the perceived complexity of accessing and investing in crypto markets. Kraken is aiming to solve both problems by providing a mobile crypto trading app. The success of the stock trading app Robinhood has shown how people in the country are willing and able to invest their money into the markets via their phones if a suitable platform exists to facilitate this, and therefore Kraken’s mobile app should be able to have a similar impact in the crypto market as well. It will also help remove the perception that crypto is a difficult market to invest in, and thereby increase access to the market in the USA.
It is quite notable that crypto has been quite popular across a range of sectors in the country, especially online. One of the best examples of this is the online gambling industry, where many operators have introduced crypto betting and gambling options on their platforms. Games such as Ethereum blackjack are increasingly common and quite popular, and this shows how there is a demand for crypto beyond just its use as an investment asset.
Kraken’s app allows users to trade in more than 50 cryptocurrencies through their smartphones, and its launch in the USA follows its rollout in Europe earlier this year. Trading volumes on the platform have grown by more than six times in the 12 months until May 2021, and while this is a reflection of the general popularity of the crypto market, it also shows how the platform itself has also been quite popular. It is the fourth-largest crypto trading platform in the world when ranked by trading volume, and has over 7 million customers already. The exchange is currently valued at around $5 billion, but this could be doubled soon through a new round of funding that is apparently imminent, with a view to taking Kraken public in 2022. Coinbase went public on Nasdaq in April 2021, and this was quite a successful listing, which explains Kraken’s ambitions to follow suit.
The new mobile app reflects the growing trend of smartphones becoming a one-stop shop for financial decisions, from investing to spending. Most people make regular purchases on their phones all the time, and even physical merchants now accept mobile payment options such as Apple Pay and Google Pay, making it almost unnecessary to carry a card or cash around. Thus, bringing investment options to mobile phones is the next step in the evolution of the financial ecosystem, and Robinhood has shown how this can be a very successful strategy. Given the popularity of cryptocurrencies, we can expect a similar impact from Kraken’s mobile app, especially if it manages to gain a large number of users immediately after launch.
The app will not be available everywhere across the country, as it will not be operational in Washington and New York due to the “cost of maintaining regulatory compliance.” Nevertheless, this is still a significant boost for the crypto industry in the country, and this launch is expected to bring hordes of new customers to Kraken.
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