Kraken is resuming USD deposits again thanks to its partnership with Luxembourg-based payment processor PayCash. With the partnership, the exchange will also accept GBP deposits and add a BTC/GBP (referred to XBT/GBP on Kraken) trading pair.
Kraken indicated that it is the only major exchange to offer a dedicated XBT/GBP order book. Recently, bitcoin vault service Netagio also launched GBP-denominated trading, but the company still has a ways to go in growing this area of their business into a major full-fledged exchange.
Kraken ceased USD deposits earlier this year after what it said was its banking partner’s inability to handle the volume Kraken required. Even while the USD deposit option remained on hold, the USD-denominated trading pair continued.
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Until now, the only fiat-denominated deposit option for clients had been with euros. With a lower level of verification, deposits can be made with digital currencies.
It was important for the exchange to have a solid relationship with its payment partner and avoid the complications faced by other exchanges who have had their accounts unexpectedly closed by their banks in the past. Said Kraken CEO Jesse Powell:
“Our clients have asked about this since we stopped servicing USD, and we are proud to say we are making good on an old promise. We have spent eight months looking for a strong partner, one with compliance capabilities, regulatory oversight, payments expertise and a technology focus. We have now found the right partner in PayCash.
Kraken currently owns 0.3% of global bitcoin trading volume, according to figures on bitcoinity.org, which also indicate that China’s three major exchanges command 77% of the market.