Kraken taps British ClearBank for GBP clearing services

U.S.-based crypto exchange Kraken has reportedly joined forces with regulated British full-service clearing bank ClearBank to offer pound-based services for clients in the U.K.

British bank ClearBank has expanded its role in the crypto market by partnering with U.S. exchange Kraken to provide GBP clearing services for Kraken’s U.K. clients, following the exchange’s recent acquisition of an EMI licence through its entity Payward Services.

According to an April 3 press release, ClearBank will be Kraken’s primary U.K. bank, having previously supported Crypto Facilities Limited, an FCA-regulated investment arm of the Kraken Group, with client money accounts.

ClearBank’s chief customer officer John Salter, commenting on the partnership, said that both companies share “similar ambitious long-term growth plans,” though he didn’t go into details.

ClearBank isn’t new to the crypto scene — back in 2018, it teamed up with London Block Exchange, the U.K.’s first dedicated crypto exchange, letting local customers trade digital currencies without needing to send money abroad.

The partnership comes as Kraken looks into raising up to $1 billion in debt financing ahead of a potential IPO. As crypto.news reported earlier, the crypto exchange is working with financial heavyweights Goldman Sachs and JPMorgan Chase to explore this move. The debt raise, which could be as small as $200 million, is aimed at fueling Kraken’s growth plans, not covering day-to-day costs.