Banks and cryptocurrencies have been two different worlds especially because cryptocurrencies were considered shady and were designed with the purpose of eliminating banks. However, over the last few years, this gap has narrowed significantly with several partnerships between banks and crypto-entities. The latest partnership of this sort is between Switzerland’s Incore Bank and popular crypto exchange Kraken.
Just a month before this development, InCore bank got the green light from the Swiss Financial Market Supervisory Authority FINMA, to allow its customers throughout the globe to access and transact with cryptocurrencies within the bank.
Powering fiat deposits
And now, Kraken, one of the largest exchanges in Europe based on volume, is offering its clientele the option to found their crypto accounts in four major currencies, namely CAD, CHF, EUR, and GBP directly from their InCore bank accounts.
Kraken clients will only be able to deposit euros via the Single Euro Payments Area system (SEPA) deposits. CHF, GBP, and CAD are expected to be enabled later in Q3 of 2020. The support for these fiat currencies would enable a wide range of investors to jump in on their first crypto trades and start trading against 30+ crypto assets listed on Kraken.
According to the announcement, the new feature would only be eligible to Kraken users with verification level ‘intermediate’ or ‘pro’. In order to achieve this, Kraken users must submit a variety of KYC details including Proof of residence, Occupation information, and a Face photo alongside other requirements.
In addition to this, users must also have a verified residency address in the SEPA zone and their bank must be located in the SEPA zone as well. The announcement also noted that first-time depositors will be subject to a 72-hour withdrawal hold.
InCore Bank CEO Mark Dambacher commented on the latest integration stating:
“Private and institutional clients who want to diversify their portfolio in an intelligent and innovative way with Kraken can transfer fiat assets via InCore Bank to the crypto exchange […] As digital assets, cryptocurrencies are a valuable addition to modern asset management and will be indispensable as a payment and investment value in the future. Therefore we are delighted to offer this service to Kraken clients.”
Maximilian Marenbach, Head of Banking and Payments, EMEA, Kraken, added:
“We are pleased to work with InCore Bank to further strengthen the links between the crypto industry and traditional financial institutions […]They deeply understand the potential of digital assets, making them an ideal funding partner for our clients. We are constantly working to offer our clients additional options for funding their accounts.”
Kraken has also been experiencing a lot of activity as recently; Kraken CEO Jesse Powell had noted that the exchange has seen a “massive influx” of investors from the institutional market when Bitcoin dropped below $4000 back in March.
“Everyone is signing up for Bitcoin […] I think people are very worried about the traditional markets, and what’s happening with the US. dollar and they’re looking for a safe haven asset,” Powell added.