Kraken's Crypto Cashback Debit Card: A New Player in the Payment Market

Kraken, a cryptocurrency exchange operator that's filed for an initial public offering (IPO), recently introduced the Krak Card, a debit instrument that offers cashback in either traditional U.S. dollars or Bitcoin (BTC). The card provides returns ranging from 0% to 2%, depending on the user's total holdings across the Kraken network.

The announcement of the Krak Card coincided with an unexpected move by the Treasury, which stated it would double its regular repurchases of relatively long-term government debt securities. This decision led to a decrease in bond yields and increased demand for riskier assets like cryptocurrencies.

While the take-up of the Krak Card will depend on prevailing sentiment towards digital coins, Kraken wisely offers cashback in both dollars and Bitcoin to hedge its bets. The company's move is not without competition, as Gemini Space Station, another cryptocurrency exchange operator, offers a credit card that returns 1% to 4% in over 50 cryptocurrencies supported by the Gemini network.