This week, Kraken introduced its new Foreign Exchange trading feature, available across its global platform, this being considered a step forward into the traditional financial space, but also reflects the constant development of cryptocurrency exchanges.
According to a report from The Bitcoinist, the exchange will initially offer nine trading pairs, primarily between some of the most popular and active fiat currencies. To be more specific, we’re talking about USD/GBP, EUR/UD, as well as EUR/JPY.
A tempting option for forex traders
Kraken revealed that one of their objectives is to constantly offer competitive fees, based on those of its stable coins, when traded against cryptocurrencies.
The exchange will not offer margin trading, at least in the first phase, although it does enable it on the platform. We won’t be surprised if this won’t be possible very soon, as most forex traders have the same approach regarding margin. However, they do plan to launch even more fiat pairs in the near future.
The trading on Kraken will be offered on its global platform, but users from the United States won’t have access to it. It’s not sure that the US ban will be permanent, considering that American citizens represent a large share of forex traders.
At first look, this new feature is far from being something incredibly special for the forex space, but they are trying to offer a solid and competitive service. Kraken has everything it needs to quickly become a strong player in the forex trading market, considering its large customer base and the solid management behind it.
Just the first exchange to offer this
It’s expected to see even more exchanges following the same example, as the top names have been trying for a long time to establish themselves as legitimate players on the financial market.
Besides cooperating with regulators and taking all the needed measures to fight fraud, many exchanges also began lobbying governments, in an attempt to recognize cryptocurrencies as a legitimate asset class.
After this announcement, everybody is looking forward to seeing even more important exchanges making the same step, which could bring important amounts of money into the blockchain space, but also pressure lawmakers to pay more attention to cryptocurrencies.