Huobi Global recently announced the launch of its NFT marketplace trial. Coinbase, meanwhile, activated a waitlist for its upcoming marketplace launch earlier this month.
As the interest in NFTs does not appear to be waning, how Kraken fared against this competition remains an important question.
Jesse Powell, Kraken co-founder and CEO, recently spoke with CNBC about where the exchange is headed in the face of competition from Coinbase and other platforms. Powell stated,
“We’ve got a Skunk Works NFT project of our own. So we’re really trying to stay on the bleeding edge of crypto.”
Apart from that, Kraken’s CEO stated that the company is ‘going deeper into crypto with a wide offering for staking of cryptocurrencies.’ He also added,
“We’re supporting parachain auctions.”
Coinbase Vs Kraken
But, Powell reiterated that these are smaller projects as they are “experts in the cryptocurrency business.”
Kraken CEO @jespow tells us the crypto exchange is looking to get into traditional financial services.. including stock trading📈📉— Kate Rooney (@Kr00ney) November 1, 2021
Comes as Robinhood, Square, PayPal move onto their turf with crypto trading @CNBCTechCheck pic.twitter.com/GFy64527Pm
Having said that, Coinbase has announced a new acquisition in a new market. It plans to buy Agara, an AI-powered support platform with offices in India and the United States. Coinbase has now entered India's start-up market for the first time.
Meanwhile, Kraken is reportedly getting ready to list Shiba Inu (SHIB), the rallying meme coin, on November 2nd. This is something Coinbase did previously in September.
In terms of regulations, the Kraken chief said,
“Our regulators in the United States don’t seem interested in really clarifying anything for us.”
Not so long back, Coinbase had landed in trouble with the U.S. regulators before the launch of its ‘Lend’ product. In the context of listed tokens, Kraken is fairly confident. Powell said,
“We have a very thorough legal review before we list something. So if you see it available in the United States, we’re fairly confident that that asset is not a security.”
Both exchanges do not qualify for fund protection by the Federal Deposit Insurance Corporation ("FDIC") in the United States.
A possibly more stringent set of guidelines for the exchanges is on the way. PWG, along with regulators such as the FDIC, recently published a regulatory report outlining the risks of digital asset trading platforms that rely on stablecoins to facilitate borrowing, lending, and trading. As a result, new recommendations may necessitate changes to the exchanges' existing business plans.