KEY TAKEAWAYS
- Kraken Custody launches the USDG Rewards Program, offering monthly rewards on USDG holdings for institutional clients.
- The program operates under Kraken Financial’s SPDI framework, ensuring regulatory compliance and asset segregation.
- Kraken Custody expands asset support to include SOL and XRP, enhancing secure storage options for high-demand digital assets.
- Recent enhancements focus on yield opportunities and personalized support for high-net-worth and institutional clients.
Institutional investors and high-net-worth clients are increasingly seeking ways to generate returns on digital assets within secure, regulated environments. In response, Kraken Custody has introduced the USDG Rewards Program, offering rewards on USDG holdings.
Enrollment in the program is straightforward. Clients holding or pledging USDG within custody are automatically included once their address is registered. Rewards are distributed monthly and deposited directly into custody vaults, allowing clients to capture returns without disrupting existing workflows. Each payout undergoes compliance and fraud screening to maintain the regulatory standards required by institutions. More details can be found here.
Protected Under Kraken Financial’s SPDI Framework
The USDG Rewards Program operates within Kraken Custody’s qualified custody model, supported by Kraken Financial’s Wyoming Special Purpose Depository Institution (SPDI) charter. This structure ensures full asset segregation, operational transparency, and regulatory oversight, providing institutional clients with a custody solution that meets high compliance standards.
Expanded Asset Support and Recent Enhancements
In addition to launching rewards on USDG, Kraken Custody now supports SOL and XRP for custody. While these assets are not part of the Rewards Program, they are fully supported for secure, segregated storage within the qualified custody platform. This expansion offers institutions and high-net-worth individuals broader access to high-demand assets with the same custody protections expected across their portfolios.
Kraken Custody continues to evolve to meet the complex needs of institutional and private clients. Recent enhancements are designed to unlock new yield opportunities, simplify operations, and deliver personalized support for strategic digital asset management. These include expanded support for high-net-worth individuals, a secure custody infrastructure tailored to private clients, and a VIP servicing model to simplify onboarding and ongoing management.
Furthermore, Kraken Custody offers TAO staking through qualified custody, allowing access to on-chain staking rewards without compromising regulatory alignment. Clients can securely participate in the Root Network via custody-native staking, minimizing operational overhead with managed workflows. This provides a scalable and compliant solution for institutions seeking yield on tokenized infrastructure assets.
Why This Matters: Impact, Industry Trends & Expert Insights
Kraken Custody has launched the USDG Rewards Program, targeting institutional investors with a stable, yield-bearing asset. This initiative aims to attract institutional capital by offering rewards on USDG holdings.
Recent industry reports indicate the increasing adoption of hybrid custody models driven by institutional demand for flexibility and regulatory clarity. This aligns with Kraken’s introduction of the USDG Rewards Program, which caters to institutional needs by providing a compliant and secure environment for digital asset management.
A CryptoTVPlus report highlights the rising demand for secure custody solutions and diversified portfolios among institutions. This supports the significance of Kraken’s USDG Rewards Program as it offers a stable and secure way for institutional investors to earn returns without exposure to cryptocurrency volatility.
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