Kraken Custody
Kraken quietly shifted from trading fees to charging 1.5% annually on $17B in stored assets — generating $200M+ at 75% margins whether crypto crashes or moons. The vault beats the casino.
Craig and launched in 2011 as a Bitcoin exchange in San Francisco. Early platforms earned transaction fees. But in 2017, something shifted. Institutional money wanted crypto exposure, but institutions need custody, a vault they can audit and ensure. Crack and build that vault. Custody is a different business than trading. A hedge fund might trade on crack and, but they also keep assets there and pay a custody fee based on amounts stored, not trades made. Trading incurs server costs and customer support. Custody incurs infrastructure costs up front, then scales. Insurance applies to millions in one transaction.
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