- Kraken Custody launched USDG Rewards for select clients.
- Tim Ogilvie leads the program development.
- Program aligns with regulatory standards through SPDI charter.
On May 21, 2025, Kraken Custody introduced its USDG Rewards Program, targeting institutional and high-net-worth clients, underpinned by Kraken Financialโs regulatory framework.
Krakenโs USDG Rewards Program fosters asset retention among institutional clients by enhancing the value proposition of USDG holdings. It underscores the growing significance of crypto-custody services in attracting institutional interest.
Kraken Custody, led by Tim Ogilvie, launched the USDG Rewards Program to entice institutional clients. The program, operational since May 2025, utilizes Kraken Financialโs regulatory structure. Automatic enrollment rewards clients for USDG deposits, integrating with the firmโs custody services.
The program, operating under a Special Purpose Depository Institution (SPDI) charter, extends its benefits automatically to clients holding USDG in custody. Monthly rewards paid into custody vaults undergo stringent compliance screening, ensuring adherence.
โCustody has always been integral to the institutional crypto space and the recent success of the bitcoin ETFs has only underscored the need for a broader range of qualified custodians.โ โ Tim Ogilvie, Head of Kraken Institutional, Kraken
Immediate industry impact includes increased USDG attractiveness among institutions and high-net-worth clients. This launch also highlights Krakenโs full-reserve banking principles, enhancing institutional confidence in its regulatory compliance.
Financially, the program aims to boost USDGโs appeal without disrupting clientsโ existing workflows. The rewards mechanism strategically reinforces Krakenโs commitment to bridging traditional and crypto finance sectors.
Krakenโs initiatives reflect an ongoing alignment with institutional needs, offering a regulated environment for earning returns on stablecoin assets. With trends indicating growing institutional interest, Krakenโs custody solutions might serve as a catalyst for broader adoption.
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