Kraken’s U.S. competitor Coinbase, dominates about 90% of the billions of dollars in assets under management in the storage sector. Kraken, considering Coinbase’s dominance in the Bitcoin storage sector, is starting a new institutional service.

In the past two months, nine new spot bitcoin exchange-traded funds have accumulated more than 300,000 Bitcoin in assets under management.

So far, US-based Coinbase has been the trusted crypto exchange to serve as the custodian for the issuers offering these new investment products. However, Kraken seems determined to question and change this current situation.

Kraken, who announced a new corporate brand on Tuesday, stated that it is risky to trust a single company that provides custody services to spot Bitcoin ETF issuers and wants to reduce this risk.

President of Kraken Corporate Tim Ogilvie emphasized the need for a wider range of custody following the approval and launch of Bitcoin ETFs. About the upcoming launch of Kraken Custody, it has appropriate timing to overcome potential concentration risk with multi-party custody and diversifies the ecosystem’s dependency risk on a single custodian.

Ogilvie in his statement on Tuesday, touching on the rapid increase in corporate crypto adoption and the recent ETF approval triggering broader institutional demand, mentioned that they will bring together products and services to meet customer needs with Kraken’s new corporate brand.

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