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Kraken has launched “Krak,” a peer-to-peer payments app designed to facilitate seamless fiat and cryptocurrency transfers across borders, challenging established players like Cash App and Venmo.
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The app integrates yield generation on over 20 digital assets and offers spend and earnings accounts, targeting the growing $8 billion cross-border payments market in the U.S.
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Kraken co-CEO Arjun Sethi emphasized the need for universal access to financial services, stating, “We believe that basic financial services should be universally accessible, and that money should move as easily as information does.”
Kraken’s new Krak app expands crypto services into cross-border P2P payments, competing with Cash App and Venmo while offering yield on digital assets.
Kraken’s Strategic Expansion into Cross-Border P2P Payments
Kraken’s introduction of the Krak app marks a significant evolution in its service portfolio, moving beyond traditional cryptocurrency exchange functions to embrace a broader financial ecosystem. This peer-to-peer payments platform enables users to send both fiat and cryptocurrencies internationally, addressing a critical demand for frictionless cross-border transactions. The app’s ability to generate yield on more than 20 digital assets positions it uniquely in a competitive landscape dominated by fintech giants like Cash App and Venmo, which currently offer limited crypto functionality. By integrating these features, Kraken aims to capture a share of the rapidly expanding U.S. cross-border payments market, projected to exceed $8 billion in 2025.
Competing with Established Money-Transmitting Apps
Cash App and Venmo have long dominated the U.S. peer-to-peer payments space, boasting tens of millions of active users and substantial revenue streams—Cash App reported 57 million monthly active users and $3.9 billion in revenue in Q1 2025, while Venmo’s user base reached 68.3 million in 2024. However, both platforms offer limited cryptocurrency support, creating an opportunity for Krak to differentiate itself by combining traditional payment services with robust crypto capabilities. Kraken’s approach reflects a strategic effort to bridge the gap between conventional finance and digital assets, appealing to users seeking integrated financial solutions that transcend geographic and currency barriers.
Kraken’s Broader Vision: From Crypto Exchange to Financial Services Powerhouse
The launch of Krak aligns with Kraken’s broader pivot under co-CEO Arjun Sethi, who has steered the company towards expanding its offerings beyond crypto trading. Earlier in 2025, Kraken partnered with Banked to introduce tokenized stocks for non-U.S. clients, signaling its ambition to compete with multi-asset platforms like Robinhood and eToro. This diversification strategy is designed to attract a wider user base by providing access to both traditional and digital financial instruments within a unified ecosystem. The Krak app’s cross-border payment capabilities complement this vision by enhancing liquidity and usability for global users.
IPO Prospects and Regulatory Considerations
Kraken’s expansion into payments and tokenized assets comes amid ongoing discussions about a potential initial public offering (IPO) in 2026. While the company has contemplated going public for several years, co-CEO Arjun Sethi has highlighted that regulatory clarity around digital assets remains a prerequisite for a successful listing. The company’s robust financial performance, including a reported $1.5 billion revenue in 2024 driven by increased investor interest in cryptocurrencies, positions it well for a future IPO. However, navigating evolving regulatory frameworks will be critical to sustaining growth and investor confidence.
Industry Implications and Future Outlook
The introduction of Krak signals a broader industry trend where crypto exchanges are evolving into comprehensive financial service providers. By offering yield-generating accounts and seamless cross-border payments, Kraken is addressing longstanding inefficiencies in the global financial system. This innovation could accelerate mainstream adoption of digital assets by simplifying access and enhancing utility. As regulatory environments mature, Kraken’s integrated approach may set a new standard for how crypto and fiat coexist within everyday financial transactions.
Conclusion
Kraken’s launch of the Krak app represents a strategic move to expand its footprint beyond cryptocurrency trading into the competitive peer-to-peer payments arena. By enabling cross-border fiat and crypto transfers alongside yield opportunities on digital assets, Kraken is positioning itself as a versatile financial services provider. The company’s future growth and potential IPO will depend heavily on regulatory developments, but Krak’s innovative features offer a compelling value proposition in a rapidly evolving market. Users and investors alike should watch closely as Kraken navigates this transformative phase in digital finance.
