Retail traders have dominated the cryptocurrency space because of the ease of using cryptocurrency exchange platforms to facilitate transactions. Retail stock trading is also becoming popular due to platforms such as Robinhood that support day trading and allow people to invest small amounts.
According to the CEO of Kraken, Jesse Powell, cryptocurrency exchanges were well-positioned to start offering stock trading. Robinhood and eToro are examples of brokerage platforms that offer both stock and crypto trading.
Jesse Powell plans to bring stocks to Kraken
In an interview with a local publication, Powell said that cryptocurrency exchanges would soon support a “super wallet” that will allow users to buy and trade various assets, including cryptocurrencies, stocks, forex, and non-fungible tokens (NFTs).
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Kraken is one of the oldest cryptocurrency exchange platforms. The platform started as a Bitcoin exchange in 2011. However, trading volumes on Kraken are well-behind industry heavyweights such as Binance and Coinbase. Powell said that the platform was looking to attract more retail traders by “trying to onboard the next billion users to crypto.”
Powell added that he was not concerned about the platform’s reliance on trading fees. There has been speculation that trading fees on crypto exchanges could soar because of an increase in the number of companies offering crypto-related services.
“I don’t really think there’s like a lot of pressure on trading fees. I still feel like they’re fairly low. I guess they could go to zero. But I don’t feel like, when the price of something is moving 20 percent everyday, I don’t think people bat an eye at 20 basis points,” Powell added.
Powell also added that Kraken was diversifying its revenue streams in the crypto space. He referred to the company’s venture into NFTs and DeFi staking. He added that these two areas would become an integral part of the exchange’s operations.
Powell’s critiques New York regulations
The Kraken CEO also addressed the crypto regulatory framework in New York. Kraken shut down its operations in New York due to a harsh regulatory climate created by the controversial BitLicense law. In 2018, Powel said that the state was still attempting to control the exchange’s activities despite leaving New York.
“After all this time, I mean, if we just looked back and did a study of the economic damage done by BitLicense, I’m sure it would be tremendous – in the billions of dollars,” Powell added.
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