Kraken Debuts in the U.S. a Debit Card Backed by 600-Plus Fiat And Digital Assets

The digital-asset trading platform Kraken announced the U.S. launch of its Krak Card, a debit card that allows users to conduct transactions in cash and digital currencies. Issued by Kansas City, Mo.-based Lead Bank, the card can be used at Visa-accepting merchants and offers up to 2% cash back.

Stripe Issuing supports the debit card in the U.S. market. The card has been available in the United Kingdom and Europe since December, with more than 135,000 issued in that region, Kraken says.

The latest news follows on Cheyenne, Wyo.-based Kraken’s launch last year of its Krak money app, which enables peer-to-peer payments in both fiat and cryptocurrency. The app now sits at the center of Kraken’s new Krak Card initiative. With either a physical or digital version of the card, users can store more than 600 currencies or digital assets and spend them at checkout, according to Kraken. The cash-back feature can be realized as digital or fiat currency.

When a user spends digital assets from his or her balance, Krak converts the assets to U.S. dollars in real time for settlement. The cardholder can also use a mix of assets to fund a purchase, Kraken says, while the user sets the order of priority, with the ability to fence off certain currencies. Some 53% of surveyed users indicated they were attracted to the ability to have ready access to scores of assets, fiat and crypto, for spending, according to Kraken, which commissioned Morning Consult to canvass 2,001 U.S. adults in July.

The card is usable at any location where Visa is accepted. The multi-asset cashback feature is especially attractive to users, according to Kraken’ survey.  “The Krak Card turns whatever people choose to hold into money they can spend anywhere, and pays the value back as cash, not points,” says Arjun Sethi, co-chief executive of Payward, Kraken’s parent company, in a statement.

Cards backed by digital assets are growing in popularity. Visa and Mastercard report supporting more than 130 such programs around the world.