Kraken launches its own wallet: Coinbase in trouble in the face of competition

Kraken launches its own wallet: Coinbase in trouble in the face of competition

Kraken, a leading cryptocurrency exchange, recently launched its own wallet product. This move aims to catch up with competitors like Coinbase and intensify competition. The Kraken Wallet supports eight networks including Bitcoin, Ethereum, Solana, and more. It is the first wallet from a major exchange to be operated as an open source system. This gives developers the opportunity to view the code and help identify and fix potential vulnerabilities early on.

Kraken Wallet users can securely store their cryptocurrencies, tokens, NFTs and DeFi assets across various blockchains. The amount of data the wallet collects has been reduced to the absolute minimum to maintain user privacy. The wallet routes user activity through Kraken's own infrastructure to shield IP addresses and protect identity and location information from external disclosure.

The competition between Kraken and Coinbase is reaching a new level as both exchanges invest in expanding their products. Coinbase has already launched its own wallet and is enjoying great popularity. To remain competitive, Kraken is reportedly planning to build its own Layer 2 blockchain and is even seeking a banking license. This progress shows that the Kraken crypto exchange is committed to keeping up with developments and innovations in the cryptocurrency sector.

In a market environment characterized by a large number of crypto exchanges and wallet providers, Kraken is sending a clear signal to competing players with its new wallet product. With a focus on privacy, openness through open source solutions and a wide range of supported networks, Kraken is positioning itself as a serious player in this highly competitive space. It remains to be seen how Coinbase and other market participants will respond to Kraken’s challenge.