Kraken is one of the world’s largest cryptocurrency exchanges.
Tiffany Hagler Geer | Bloomberg via Getty Images
Cryptocurrency exchange Kraken is launching a cashback US debit card that will compete for a place in consumers’ wallets as cryptocurrencies evolve from an asset class to the infrastructure of mainstream financial products.
The card, called the Krak Card, offers up to 2% back in cash or Bitcoin, with the rate increasing based on the value of assets held by the customer. Rewards are paid directly as money, not points.
Customers can also spend directly from over 600 currencies and crypto assets and automatically convert selected balances to dollars at the time of purchase. Users can set the order in which assets are consumed, and there is also an option to split a single purchase into multiple balances.
The move will put Kraken in more direct competition with payments and fintech super apps. Mr. Block cash up, paypal Venmo, SoFi, robin hood and chime. This comes as cryptocurrencies are increasingly integrated into the broader financial system and industry players compete to serve as a distribution layer for a wider range of financial products.
The opportunity for Kraken extends beyond the interchange fees that customers incur when they use their debit cards. Kraken offers cards through partner banks that issue cards and is subject to U.S. limits on debit card interchange fees. These limits limit the transaction revenue available to support the benefit, making it difficult to cover the 2% benefit through card usage alone.
Kraken is likely interested in increasing the amount of financial life for each customer by using the new debit card to hold deposits, facilitate spending, and keep more customer assets on the platform.
Founded in 2011, Kraken has historically been an exchange serving crypto natives. Its core user base is made up of institutions, trading companies, professional traders, and active leverage traders, with many individual users likely having been trading cryptocurrencies for years (though the company is looking to expand its user base with agent trading features in its newly reimagined app). in contrast, coinbase positions itself as the gateway to cryptocurrencies, and Robinhood positions itself as the gateway to a wide range of investments.
2026 coins, food
At a time when the future of cryptocurrencies looks to be less “cryptocurrency” and more trading in meme coins and more tokenized stocks, commodities, IPOs, and dollars, Kraken is clearly doubling down on its crypto-native identity. Its roots go back to the early days of cryptocurrency, when decentralization and financial autonomy were at the core of the movement, and rather than distancing itself from that culture as the industry matures, Kraken appears to have made it a defining part of its brand.
“People are losing trust in how the financial system treats them, how the interest rates, fees and rewards they are paid actually work, and they are right to do so,” Arjun Sethi, co-CEO of Kraken’s parent company Payward, said in a statement.
Debit cards were created around the growing disconnect between American consumers and the financial products available to them. According to a national survey of more than 2,000 U.S. adults commissioned by Krak, 63% of Americans say they feel financially behind, and 60% would switch to a debit card that offers meaningful benefits without taking on debt.
“For decades, the system has operated on modest subsidies. The savings, fees and expenses of ordinary people fund the revenues, but those revenues rarely come back to them. The old deal was simple: If you wanted a reward, you had to borrow money to get it. That deal is over,” Sethi said. “Krak Card turns what people choose to keep into money they can spend anywhere, and returns that value in cash rather than points.”
More than a crypto exchange, Kraken offers spot and derivatives trading, institutional custody, and tokenized stocks. The company also received a Wyoming banking charter and earlier this year became the first cryptocurrency company to secure a master account with the Federal Reserve. This means the company’s banking subsidiaries can connect directly to the core US payment rails.
