Cryptocurrency exchange Kraken has ventured into the business of traditional forex (FX) trading.
The new service is going live today at around 14:30 UTC (10:30 am EST), with nine fiat pairs.
The pairs include six major currencies - U.S. dollar (USD), Canadian dollar (CAD), euro (EUR), British pound (GBP), Swiss franc (CHF) and Japanese yen (JPY).
Kraken said additional pairs may be added in the future.
Trading fees on forex pairs will be based on Kraken's stablecoin fees, which uses a maker-taker fee model based on volume activity.
Margin trading (i.e., trading using borrowed funds) is currently not available for forex pairs, although Kraken does offer it for cryptocurrencies.
Notably, the forex trading service is not available for U.S. residents.
Core business lines
San Fransico-based Kraken is one of the oldest players in the crypto space, having founded in 2011. Its main business lines include a cryptocurrency exchange, an over-the-counter (OTC) trading desk, and a futures trading platform, as The Block reported last September.
Over the years, Kraken has made various acquisitions to improve its infrastructure and strengthen its team. Most recently, Kraken acquired Australia-based crypto exchange Bit Trade and OTC desk Circle Trade. Last year, in a "nine-figure deal," Kraken acquired Crypto Facilities, which it rebranded as Kraken Futures. In total, the exchange has made ten acquisitions public since its founding.
Kraken's entry into forex trading appears to be an inaugural move. It remains to be seen whether other crypto exchanges follow suit.
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