Kraken has launched  Krak, a peer-to-peer (P2P) payment app, on June 26, 2025. Krak enables users to send and receive funds instantly and without fees, supporting both cryptocurrencies and fiat currencies across more than 160 countries and 300 assets.

Image Source: Krak

What is Krak?

Krak is an all-in-one financial hub, where users can manage everyday spending, send remittances, earn passive income, and soon, access credit cards, all from a single app. Krak is Kraken’s answer to longstanding frustrations with traditional financial systems, which are often slow, expensive, and opaque. Unlike legacy payment apps that rely on outdated banking infrastructure, Krak is built on blockchain technology, allowing for real-time settlement and eliminating the need for intermediaries. This results in instant, borderless transfers with zero fees, a stark contrast to the multi-day delays and high costs associated with services like PayPal, Venmo, and Cash App.

Key Features of Krak

1. Instant Transfers: Users can send money globally, both in fiat and crypto, with no fees.

2. 300+ Assets: Krak supports a vast range of currencies, including major cryptocurrencies, stablecoins, and local fiat currencies, all within a single account.

3. Kraktags: Instead of complex wallet addresses or bank details, users can send funds using simple, personalized Kraktags.

4. Earn Rewards: Users can earn up to 4.1% APR on USDG stablecoin holdings and up to 10% on staking select digital assets, with no minimums or lockups.

5. Future Services: Krak will soon introduce physical and virtual cards for global spending, as well as lending options that allow users to borrow against their crypto holdings.

Challenging Payment Giants

Kraken positions itself in direct competition with established fintech players with the launch of Krak. While PayPal and Wise offer international transfers, they are often slow and costly. Venmo and Cash App, meanwhile, have limited global reach and asset support. Krak’s blockchain-native approach enables instant, permissionless transactions worldwide, with multi-asset support and yield generation features that go beyond what traditional apps offer.

Security and Transparency

Kraken emphasizes that Krak is built on a foundation of regulatory compliance and transparency. The app uses public blockchains for settlement, and stablecoins like USDG are fully backed by reserves. Users’ funds are protected by Kraken’s established security protocols and proof-of-reserves audits, addressing a key concern in the crypto payments space.

Looking Ahead

With Krak, Kraken is making a bold bid to redefine how money moves in the digital age. As the app rolls out new features like global cards and lending, and as regulatory clarity improves worldwide, Krak could become a formidable challenger to the established giants of global payments.