SAN FRANCISCO--(BUSINESS WIRE)--Kraken.com, a San Francisco-based bitcoin exchange, is pleased to announce its partnership with PayCash, a Luxembourg-based leader in innovative EU-focused payment solutions. The partnership will allow Kraken to provide both US dollar (USD) and British pound (GBP) funding to its clients.
Kraken clients in the 28 EU member states will have initial access to USD and GBP funding with availability for additional countries planned at a later date. As part of Kraken’s strategic roadmap, support for other EU and Asian currencies, along with wider global coverage, is planned for the future. These new funding options coincide with the launch of bitcoin-pound (XBT/GBP) trading on Kraken. Bitcoin-dollar (XBT/USD) trading is already available on the exchange.
Kraken is the only major exchange to offer a dedicated XBT/GBP order book. This marks an important milestone in integrating bitcoin into the global financial infrastructure, as London is one of the world's leading financial hubs. London now has the appropriate trading platform to support its banks, hedge funds and other institutional investors that are interested in trading bitcoin.
Although trading between bitcoin and USD is already available on Kraken, USD deposits have been disabled since February 2014 after it became apparent that Kraken’s former USD banking partner wasn’t capable of handling the volume Kraken required.
“Our clients have asked about this since we stopped servicing USD, and we are proud to say we are making good on an old promise,” said Kraken CEO Jesse Powell. “We have spent eight months looking for a strong partner, one with compliance capabilities, regulatory oversight, payments expertise and a technology focus. We have now found the right partner in PayCash.”
The PayCash partnership allows Kraken to leverage its success with the euro market and bring its signature exchange experience back to the USD market, which has traditionally been the most popular market for trading bitcoin. Kraken became the largest bitcoin-euro (XBT/EUR) exchange only 5 months after its launch in September 2013.
The partnership was formed very thoughtfully, with complete transparency and commitment to regulatory compliance. PayCash operates under the regulatory oversight of Luxembourg’s CSSF. Kraken operates with clearance from the UK Financial Conduct Authority and as an agent of Fidor Bank AG.
Entering into a partnership with a Luxembourg-based financial institution was an obvious choice for Kraken. “The Luxembourg financial center ecosystem is a very favourable one for companies like ours with knowledgeable talent available, efficient banking, and an exceptional level of high speed communication infrastructure and TIER IV hosting facilities,” said PayCash CEO Dr. Jürgen Wolff.
The strong partnership between Kraken and PayCash means an industry-leading level of operational consistency, confidence and security for Kraken clients.
“Weak banking relationships have unfortunately led to problems for other exchanges where their banking partners close the account without warning,” said Powell. “When you build the kind of solid relationship we have with PayCash, the conflicts are naturally going to be less prevalent.”
Kraken (http://www.kraken.com), the leading bitcoin exchange for euro trading, offers advanced trading tools, a sophisticated user interface, robust technical security and full regulatory compliance to traders and institutions. Since its public launch on 9 September 2013, Kraken has grown to serve over 100,000 clients around the globe and is consistently rated as the top exchange due to its continued commitment to putting clients first. Kraken, based in San Francisco, combines years of experience in the virtual goods and currency markets with a highly skilled engineering team and a host of carefully cultivated banking and finance relationships.
PayCash Europe S.A. is a Luxembourg-based Electronic Money Institution which services the 28 EU member states, and is licensed and regulated by the CSSF. Since 2012, it has offered three main services: 1) PayCash branded multi-channel mobile payment platform, 2) E-Money Services for e- and m-commerce applications, 3) and payment solutions for the Bitcoin industry. Throughout these services, PayCash leverages existing and nascent transaction networks to provide consumers and merchants the most seamless method of both sending and receiving payments.