Kraken debuted its crypto wallet to compete with providers like Coinbase and Consensys in an expanding digital asset storage market. 

America’s second-largest crypto exchange announced its self-custodial wallet solution on April 17, offering an alternative to similar products like MetaMask, Phantom, and Trust Wallet. 

According to Kraken, its crypto wallet is the first to adopt an open-source development style, meaning blockchain builders and contributors can interact with the app’s code on GitHub.

The storage tool reportedly emphasizes privacy along with security. To achieve this, the crypto exchange chooses to proxy user actions via in-house systems, a method touted as an IP-masking strategy. 

White-hat actors were additionally welcomed to test the product for weaknesses and loopholes. The firm’s open-source grant program will reward developers who report issues and security patches successfully. 

Following FTX’s crash and a resurgence in crypto interest, the exchange looks to expand its presence in multiple digital asset businesses and compete with rivals like Coinbase.

After Coinbase launched its Ethereum-based layer 2 network Base last year, Kraken was said to have contacted several L2 startups concerning releasing a similar decentralized chain. Kraken already backs L1 blockchains like the Nibiru chain.

The company also launched its institutional division dedicated to servicing big firms and possibly tapping the spot Bitcoin (BTC) ETF market. Coinbase, the largest U.S.-based crypto exchange, was chosen as a custodian by six issuers, showing a demand for established virtual asset service providers despite SEC lawsuits against the entity.

Also, the platform has accelerated efforts to secure regulatory permission in multiple jurisdictions. This year alone, the crypto exchange was approved for operations in the Netherlands, and a Wyoming-based licensing service for large institutions was launched.