The top-10 crypto exchange says it plans to add lending and credit card programs to the app in the future.
Leading United States-based crypto exchange Kraken has launched Krak, a new payments app aiming to compete in a space where PayPal, Venmo, and Cash App are all stepping up their push to dominate.
The new app — available for iOS and Android — allows users to move money across borders using crypto, including stablecoins, as well as fiat.
A Thursday blog announcement by Kraken co-CEO Arjun Sethi states that the new app supports payments in over 160 countries, allows users to transact across more than 300 crypto assets, and offers rewards on holdings.
According to the post, users holding Global Dollar (USDG) — a stablecoin backed by Kraken, Paxos and Robinhood with a current market cap of $322 million — can earn up to 4.1% APR, while users can earn up to 10% for staking other cryptocurrencies in the app.
The app uses “Kraktags,” payment aliases for users — similar to Cash App’s $cashtags — which let users send funds via the app using simple handles, instead of identifying information, like a legal name or email.
In late December 2024, Cash App quietly removed Bitcoin transfers between $cashtags, following months of scrutiny from federal authorities over the platform’s anti-money laundering controls.
Kraken is currently the sixth-largest centralized cryptocurrency exchange globally by 24-hour trading volume, with over $866 million traded over the past day.
Growing Competition
Sethi said in the blog post that the goal of launching the app is to fix a “system that broke and stayed broken,” referring to international payments on traditional banking rails.
Kraken co-CEO said that the new app addressed what it still sees as the problem of sending money globally, representing a “full-stack rethink of how money should work.” In addition to payments via Krak, the centralized exchange giant is also planning to roll out physical and virtual cards in a collaboration with Mastercard, as well as collateralized lending services, as part of the app’s expanded features.
Users will be able to borrow against their crypto holdings in Krak without credit checks or paperwork, though the timeframe for this feature remains unclear.
A spokesperson for Kraken clarified in comments to The Defiant that Mastercard will be working with the exchange by “launching Krak debit cards to clients in certain regions.”
“Right now we’re laser-focused on growing adoption and usage of Krak, but over time we’ll be looking to add pay-in-advance services, such as lending, loans and credit card programs,” the spokesperson added.
Kraken is entering a crowded space, where platforms like PayPal and Cash App have already been active for some time. PayPal has expanded its crypto focus in recent years, adding support for multiple cryptocurrencies in the app and launching its own stableclin, PYUSD, the market cap of which recently surpassed the $1 billion mark.
Cash App’s crypto operations also continue to play a major role in its business. According to Cash App parent company Block’s Q1 2025 earnings, $2.3 billion of the firm’s $5.77 billion in total net revenue was from Bitcoin revenue.
