Why are we launching Krak – Kraken Blog Kraken Blog

By Arjun Sethi, co-PDG of Kraken

With Krak, we take a daring step towards the reconstruction of what we consider to be the most important layer of the world economy: how people move and use money.

As long as I remember, the moving of the money felt broken. It is one of those fundamental things that you expect to work, and yet, whether you send a few dollars to a friend or wiring funds through the continents, the process is slow, expensive and frustrating and opaque. This should not be the case in 2025.

The problem: a system that broke and has remained broken

Most people do not realize how obsolete the financial infrastructure is always. Traditional banks often operate on software built in the 1970s. Many systems supplying international payments have not been considerably improved for decades.

You can send a message or video anywhere in the world instantly, but the sending of $ 100 can still take days.

This is largely due to the fragmentation and the opportunity of the risk that the traditional system is. Interior payments are based on lots treatment. Cross transfers involve a chain of correspondence banks, each adding time, cost and friction. Regulatory barriers Access to silo.

And high costs – from metal loads to the exchange of cards to hidden FX marks – are everywhere.

Consider the extent of the problem

In a large part of the world, the simple fact of sending or receiving money is not a privilege, not a basic right.

• Globally, more than 1.4 billion adults are still not banished, excluded from the financial system.
• Even in advanced savings, everyday users lose 2 to 3% on card transaction costs.
• International payment costs are worse – often exceeding 6%, some transfer corridors reaching both figures.

Much of this is rooted in obsolete infrastructure. Many banks still use mainframe systems written in Cobol (common language focused on the company) and avoid upgrades due to cost and risk. The regulations add additional complexity: multiple jurisdictions, overlapping requirements and “derisory” behaviors have made financial access and slow innovation.

Meanwhile, the world colony remains surprisingly slow. ACH transfers can take 2 to 3 working days and international threads can take 3 to 5 days. The systems continue to treat payments by lots, without a layer of overall compensation in real time. What should be instantaneous is always strangled by systems that treat money like paper.

The result? A financial world full of latency, tolls and exclusion.

What we build instead

Krak is an all-in-one global monetary application built from zero on cryptographic infrastructure. He mixes the familiarity of traditional finance with the speed, opening and flexibility of modern blockchain networks.

Krak is not only another portfolio or payment tool. It is a complete redress of how money should work.

With Krak, you can:

• Send and receive funds instantly in more than 160 countries using Kraktags (our version of a payment handle).
• Transform transparently on 300+ active – Fiat, crypto and stablecoins – all in a single account.
• Gain rewards simply by having a value in your account. No subscriptions. No locking. No absurdity.
• Soon, go global with physical and virtual krak cards.

This is what the financial system should have been all along: fast, without border, open, without authorization.

Krak uses stablecoins fully supported by reserves. You can hold USDG and win up to 4.1% after the first day. You can also win up to 10% by stimulating other cryptocurrency. There is no minimum or hoops to jump.

And soon you can borrow directly against your assets using collateral loans. No credit verification. No paperwork. Just access to liquidity at any time.

We have built this on an infrastructure without authorization. Public blockchains set up transactions worldwide, in real time. The assets are portable, interoperable and under your control. There are no intermediaries inserting the friction or the cost. This means faster, lower costs and more access.

We also believe that identity and access to matter. Kraktags delete the need for account numbers or cryptographic wallet chains. Sending the value, whether to your friend next to or around the world, becomes as intuitive as sending a message.

Why this counts

At the heart of each economy is the transaction capacity. The faster and cheaper you can make value, the more people have opportunities. And when the cost of moving money falls to zero, new forms of financial coordination become possible.

It’s not just a crypto issue. It is a question of operating the financial system for everyone.

People do not want more features. They want fewer problems. They want to be able to send money, have value, invest and borrow without being penalized at each stage. They want to trust the company they use do not benefit from their lack of options. And they want to access tools that help them go ahead – not accounts that charge them for existing.

Above all, they want financial systems that reflect the functioning of the world today: digital, global and still activated.

Krak removes friction. No thread. No 3 -day regulations. No 6% of costs to send money to family members at home. No, you have not denied access to your own funds because of where you live or the quantity you earn.

We believe that basic financial services should be universally accessible and that money should move as easily as information.

Where we are going from here

Krak is only the beginning. We see it as a foundation. A basic construction element for the way people around the world will manage their money in the future.

It will be a long trip. There will be things to improve, characteristics for refining and systems to harden. But our goal is clear: to remove the friction from finance, to move free value and build something that people really want to use.

We are not here to rebuild the banks.

We are here to build what comes after.