Kraken Launches Open-Source Crypto Wallet to Compete with Coinbase and MetaMask

·

The cryptocurrency landscape is witnessing another major development as Kraken, one of the largest U.S.-based crypto exchanges, officially unveils its self-custodial wallet—Kraken Wallet. This strategic move positions Kraken alongside industry leaders like Coinbase and MetaMask, intensifying competition in the rapidly growing digital asset storage space.

With support for multiple blockchains and a strong emphasis on privacy and open-source development, Kraken aims to empower users with full control over their assets—aligning with the core principle of decentralization: “your keys, your crypto.”

A New Era of Self-Custody

Kraken Wallet is now live and available to both existing Kraken users and the broader public. As a self-custodial solution, it allows individuals to manage their private keys directly, eliminating reliance on third-party custodians. This shift reflects a growing trend in the crypto community toward personal responsibility and security.

The wallet supports eight major blockchains at launch:

This multi-chain compatibility ensures users can seamlessly interact with decentralized applications (dApps), swap tokens via integrated decentralized exchanges (DEXs), and participate in emerging Web3 ecosystems—all from a single interface.

👉 Discover how next-gen crypto wallets are reshaping digital ownership.

First Major Exchange Wallet to Go Open Source

One of the most significant differentiators of Kraken Wallet is that it’s the first wallet developed by a major exchange to be fully open-sourced. Unlike proprietary solutions used by many platforms, Kraken has made its code publicly accessible, inviting developers worldwide to audit, improve, and contribute.

This transparency builds trust and strengthens security—an essential factor in an industry often targeted by hackers and scams. Additionally, Kraken will reward developers who identify vulnerabilities through its open-source grant program, fostering a collaborative environment focused on continuous improvement and resilience.

“Kraken has been telling people for more than ten years to self-custody their assets,” said Eric Kuhn, Product Director for Kraken Wallet. “We built Kraken Wallet on the principles central to the crypto space, such as user privacy and open-source code.”

Privacy by Design

In an age where data privacy is paramount, Kraken emphasizes minimal data collection. The company asserts that the wallet collects only the “absolute minimum amount of data” required to function. Notably, user activity is routed through Kraken’s own infrastructure, which helps shield IP addresses and prevents exposure of location or identity to external parties.

This approach addresses common concerns among crypto users about surveillance and tracking—especially when interacting with public blockchains where transaction histories are transparent.

By prioritizing anonymity and reducing metadata leakage, Kraken aligns itself with privacy-first philosophies that underpin much of the decentralized movement.

Why Now? The Post-FTX Shift

The timing of Kraken’s wallet launch is no coincidence. The collapse of FTX in 2022 served as a wake-up call for millions of investors who lost access to their funds after entrusting them to a centralized platform. That event accelerated awareness around the risks of custodial services and reinforced the importance of self-custody.

As a result, major exchanges are expanding beyond trading platforms into on-chain tools and infrastructure. Coinbase introduced Coinbase Wallet, Binance offers Trust Wallet, and now Kraken enters the arena with its own robust offering.

“Kraken Wallet is how we invest in the ‘your keys, your crypto’ ecosystem,” Kuhn added, “which is vital for the existence of permissionless financial access.”

This evolution marks a shift from exchanges merely facilitating trades to becoming full-stack Web3 gateways—providing wallets, staking, NFT marketplaces, and developer tools.

Expanding Beyond Trading: Kraken’s Broader Vision

Kraken isn’t stopping at wallets. In recent months, the company has been actively building out its product suite. Back in November 2023, reports indicated that Kraken was exploring partnerships to develop its own Layer 2 blockchain solution—a move likely inspired by Coinbase’s successful launch of Base, an Ethereum Layer 2 rollup.

A dedicated Layer 2 network could enable faster, cheaper transactions while deepening integration between Kraken’s exchange, wallet, and future DeFi offerings. Combined with an open-source wallet, such infrastructure would position Kraken as not just a trading venue but a foundational player in the decentralized economy.

👉 See how leading platforms are integrating blockchain into everyday finance.

How It Stacks Up Against Competitors

While MetaMask remains the dominant self-custodial wallet—especially among Ethereum developers—and Coinbase Wallet benefits from seamless integration with its exchange, Kraken Wallet brings unique advantages:

These features make Kraken Wallet a compelling option for both newcomers and experienced users seeking greater control without sacrificing usability.

Core Keywords for SEO Optimization

To ensure this content aligns with search intent and improves visibility, the following core keywords have been naturally integrated throughout:

These terms reflect high-volume queries related to digital asset management and reflect what users are actively searching for when evaluating secure ways to store and use cryptocurrencies.

👉 Compare top crypto wallets and find the right one for your needs today.

Frequently Asked Questions (FAQ)

What is a self-custodial wallet?

A self-custodial wallet gives users complete control over their private keys—the cryptographic codes needed to access funds. Unlike custodial wallets (like those on exchanges), no third party holds or manages your keys, reducing counterparty risk.

Is Kraken Wallet free to use?

Yes, Kraken Wallet is free to download and use. However, standard blockchain transaction fees (gas fees) apply when sending tokens or interacting with dApps.

Can I use Kraken Wallet without having a Kraken exchange account?

Absolutely. While integrated with Kraken’s ecosystem, the wallet is available to anyone, regardless of whether they have an account on the exchange.

How does open-source code improve wallet security?

Open-source software allows independent developers to review, test, and audit the code for vulnerabilities. This transparency leads to faster bug detection and fixes, making the wallet more secure over time compared to closed-source alternatives.

Which blockchains does Kraken Wallet support?

At launch, Kraken Wallet supports Bitcoin, Ethereum, Solana, Optimism, Base, Arbitrum, Polygon, and Dogecoin—with potential for additional networks in future updates.

Does Kraken track my transactions?

Kraken states that it collects only the minimum data necessary for functionality. User activity is proxied through Kraken’s infrastructure to hide IP addresses and prevent external tracking, enhancing privacy during on-chain interactions.

With the release of Kraken Wallet, the exchange reinforces its long-standing advocacy for user sovereignty in digital finance. By combining open-source development, strong privacy protections, and multi-chain accessibility, Kraken delivers a powerful tool for navigating today’s decentralized web.

As the line between centralized exchanges and decentralized infrastructure continues to blur, tools like Kraken Wallet represent the next frontier in empowering individuals with true ownership of their digital assets.