Kraken is stepping up its challenge to traditional finance with a new card and app features that let users spend, save, and grow their money directly through crypto.
Quick Summary – TLDR:
- Kraken has launched the Krak Card in the UK and EU, offering 1% cashback in fiat or Bitcoin.
- Users can now make purchases using any asset in their Krak account with no foreign exchange or monthly fees.
- Krak Vaults promise up to 10% APY through decentralized finance protocols.
- Salary deposit support is coming soon to fully integrate Krak as a primary financial account.
What Happened?
Crypto exchange Kraken announced a phased rollout of the Krak Card for users in the UK and EU. Powered by Mastercard, the card offers 1% cashback on every purchase, payable in either local currency or Bitcoin. This launch is part of a broader push by Kraken to transform its Krak app into an all-in-one financial platform, giving users tools to spend, send, and grow their money using crypto.
Introducing your new debit Card + Money App 💳📱
— Krak (@Krak) November 25, 2025
• 1% cashback on every spend
• 400+ currencies — cash & crypto
• Fee-free spending
Get your Krak Card now 👇https://t.co/tfArZ6D6yd pic.twitter.com/aiiMg8NAsV
Krak Card: Spending Crypto Like Cash
The Krak Card aims to make everyday crypto use seamless. It supports instant purchases across 400 crypto and fiat assets, letting users combine multiple balances at checkout. For example, users can pay £100 using £80 in cash and £20 in Bitcoin, Ethereum, or Solana, with real-time conversions. The card comes in physical and virtual formats with no hidden fees, foreign exchange charges, or monthly costs.
Users also have control over how their assets are used, with options to set spending preferences and exclude specific holdings. According to Mark Greenberg, Kraken’s Global Head of Consumer:
Vaults: Earning Interest Without Leaving Crypto
Kraken has also introduced Krak Vaults, a DeFi-powered savings product integrated into the Krak app. Users can earn up to 10% annual yield by selecting from risk-adjusted strategies:
- Balanced Yield: Up to 5.5% APY
- Boosted Yield: Up to 9.5% APY
- Advanced Strategies: Over 10% APY for higher risk tolerance
These Vaults connect users to audited DeFi lending protocols, allowing for continuous compounding without lockups or minimums. Kraken has not disclosed full details on how these yields are generated but notes that the service brings more flexibility and higher returns than traditional banks.
Salary Deposits and Full Banking Alternative
In a move to help users treat Krak as a primary financial account, Kraken is rolling out salary deposit functionality for EU and UK customers. This feature will allow direct paychecks to be deposited into the Krak app, integrating spending and saving into one streamlined crypto experience.
Kraken’s Bigger Fintech Play
Kraken’s Krak app, launched in June 2025, has already been downloaded over 450,000 times across 130 countries. With the introduction of Krak Cards and Vaults, Kraken is signaling its ambition to become a serious competitor to neobanks and fintech firms like Coinbase, Crypto.com, and Revolut.
Kraken holds a MiCAR license from the Central Bank of Ireland, giving it regulated access to crypto services across the European Economic Area. It is also one of the oldest FCA-registered platforms in the UK, with a presence dating back to 2013.
As part of its long-term roadmap, Kraken plans to launch credit products, offer new card designs, and introduce enhanced merchant rewards to deepen its foothold in consumer finance.
SQ Magazine’s Takeaway
Honestly, this is the boldest move Kraken has made in years. I love seeing a crypto company try to replace your actual bank, not just be a trading platform. With cashback, high-yield Vaults, and salary deposits all bundled into a sleek app, they’re making crypto practical for everyday life. It’s clear they want Krak to be your default financial account. And with no monthly fees and rewards that rival most neobanks, they’re actually making a strong case. I’ll be watching closely to see how well they can deliver on these promises.
