Kraken Exchange as Stablecoin Infrastructure
Arjun Sethi, co-CEO of Kraken, on building the Nasdaq of crypto
The real moat in stablecoins sits less in issuing the token and more in controlling the pipes that turn bank money into digital dollars, then back again. Kraken is arguing that stablecoin adoption depends on an exchange layer with licenses, local payment rails, deep order books, and simple consumer flows. That is why it frames the exchange as infrastructure for remittances, B2B payments, and savings, not just speculation.
-
Kraken has long competed on fiat access and liquidity. Its early Euro banking integration made it a key crypto entry point in Europe, and its current product stack spans pro trading, consumer trading, and send and receive flows built on the same exchange back end.
-
The practical bottleneck for stablecoins is not sending the token once it is on-chain. It is getting funded, converted, and withdrawn at size with tight spreads and local compliance. Kraken describes this as supporting both on-chain and off-chain liquidity for payments and cross collateral movement.
-
This also explains why USDT won so much global volume. Tether expanded through broad distribution partnerships, while Kraken tries to capture value one layer below, by being the regulated venue and ramp that wallets, apps, and businesses plug into.
The next phase of stablecoins looks like a fight over distribution and conversion, not just token market share. Exchanges, banks, and embedded ramp providers that make fiat to stablecoin movement invisible inside payroll, commerce, and cross border software will own the highest value part of the stack, and Kraken is positioning to be one of those gateways.