Kraken enters the crypto rewards card market
Kraken has announced the launch of the Krak Card. This Bitcoin rewards debit Mastercard is now available to users in the European Union and United Kingdom. The card offers 1% cashback on every purchase and users can receive rewards in either Bitcoin or their local fiat currency. It integrates directly with users’ spending balances within the app. This allows global payments using over 400 supported assets at any merchant that accepts Mastercard.
Moreover, users can establish a spending order. Users specify which currencies they prefer to use first and Krak will automatically combine the necessary assets to finalise a transaction. For instance, imagine a user lacks sufficient Bitcoin to complete a purchase, they can utilise their Solana or Ethereum balances to cover the difference. The card has no monthly or annual fees. However, a spread fee applies when assets are sold to facilitate a transaction.
The Krak Card is set to expand into additional regions in the forthcoming weeks, with plans to enter the US market. In the longer term, Kraken intends to introduce more card options. Enhanced rewards and credit products are also coming. A Kraken representative stated that the firm has ambitions to expand availability to US Krak users. They also plan to add more compelling features. Kraken launched the Krak app in June 2025 in order to compete with well-known peer-to-peer payment services such as Venmo and Cash App. So far, the app has been downloaded over 450,000 times across more than 130 countries
Strategic timing ahead of public listing
The Bitcoin rewards card launch follows closely after Kraken’s confidential S-1 filing. The company submitted this to the US Securities and Exchange Commission. This indicates its intention to go public. Kraken has yet to disclose the number of shares or pricing for its initial public offering. However, the company revealed last week that it successfully raised $800 million in funding. This resulted in a valuation of $20 billion ahead of its planned IPO. This strategic timing suggests Kraken is positioning itself as a comprehensive financial services platform. The move happens before entering public markets. Kraken now competes directly with rivals Coinbase and Gemini. Both competitors have expanded their Bitcoin rewards offerings this year. Notably, both provide credit card products that feature cashback rates of up to 4%. This is significantly higher than Kraken’s 1% debit card offering. Nevertheless, Kraken’s approach differentiates itself through its no-fee structure. The company also offers the ability to spend from hundreds of different digital and fiat assets seamlessly.
The company is also planning to introduce Krak Vaults, offering up to 10%+ annual percentage yields on deposited assets. Moreover, they will soon enable salary deposits directly into Krak accounts. These features aim to position Krak as an “everything account” that replaces traditional banking services. The broader context is one of intensifying competition amongst crypto exchanges to capture mainstream users through familiar banking products. As regulatory clarity improves in multiple jurisdictions and institutional adoption accelerates, exchanges are racing to offer comprehensive financial services that go beyond simple trading. Kraken’s timing (launching consumer-facing products whilst preparing for an IPO) reflects confidence that crypto has reached a maturity level where exchanges can compete directly with traditional financial institutions for everyday banking needs.
