The launch of Kraken’s MiCA-aligned service in Europe gives institutions a regulated way to access kraken custody while keeping digital assets secure under a unified global framework.
How does Kraken’s European MiCA custody framework work?
Europe’s Markets in Crypto-Assets (MiCA) regime is reshaping how institutions interact with digital assets. With MiCA now in force across the European Economic Area (EEA), firms finally operate under a single, harmonized rulebook instead of fragmented national standards.
Within this framework, Kraken’s European entity, Payward Europe Solutions Limited (PESL), delivers custody regulated by the Central Bank of Ireland. Through PESL, institutions across the EEA can safeguard their assets using a European crypto custody solution designed around compliance, transparency and operational robustness.
This development significantly extends Kraken’s institutional reach. Moreover, it connects MiCA-regulated services in Europe with the qualified solution operated via Kraken Financial in the U.S., forming a coordinated global custody network for digital assets.
What protections does MiCA-regulated custody provide?
PESL’s authorization status brings traditional financial oversight standards into the digital asset space. Supervision by the Central Bank of Ireland aligns the firm with EU-level expectations on risk management, governance and client asset protection.
Under MiCA, clients benefit from fully segregated custody. Their digital assets are held separately from those of PESL and from balances on the Kraken exchange, reducing counterparty and commingling risk for institutional portfolios.
Furthermore, reserves are supported by independent audits and collateral verification. Robust reporting, together with MiCA-compliant governance, is intended to give institutions verifiable proof of asset backing and stronger visibility into how custody operations are managed.
The outcome is an institutional digital asset custody environment that aims to combine security, transparency and regulatory clarity for clients operating anywhere in the EEA.
How are Europe and the U.S. integrated in Kraken’s model?
Kraken’s network now offers jurisdictional flexibility for institutions managing global digital asset strategies. Organizations based in the EEA onboard through PESL under MiCA, while U.S. clients use the qualified structure offered by Kraken Financial, which operates under state and federal oversight in Wyoming.
Both entities are built on a unified technical and operational stack. As a result, clients experience consistent reporting and security standards, whether they engage from Europe or the U.S., and they can coordinate multi-jurisdiction portfolios with a single architecture.
This shared foundation is designed to harmonize onboarding, controls and monitoring. That said, it also supports cross-border strategies where digital assets must be managed across several regulatory regimes without fragmenting infrastructure.
What operational safeguards underpin Kraken’s custody stack?
Kraken Custody combines institutional-grade security with the transparency of blockchain settlement. PESL applies the same core principles that guide Kraken Financial, including secure cold storage, rigorous key management practices and independent attestations.
Moreover, these safeguards operate across every layer of the custody stack, from wallet infrastructure to internal controls and reporting. The aim is to deliver operational maturity that matches the expectations of fiduciaries, funds and corporate treasuries responsible for significant digital asset holdings.
This alignment allows institutions to hold and manage digital assets within a regulated, resilient and independently verified structure. It is designed specifically for organizations that require auditability, segregation and high assurance around how their assets are stored and moved.
How does this move strengthen Kraken’s global custody footprint?
With the addition of PESL in Ireland, Kraken now anchors its services under two major regulatory regimes. On one side is MiCA in Europe; on the other is the state and federal framework that underpins the Kraken Financial U.S. custody model.
This expansion reinforces Kraken’s long-standing focus on transparent, compliant operations across global markets. It also creates a structured answer for institutions asking whether kraken custody europe can meet the standards applied to traditional financial custodians.
Together, these regimes position the group as a regulated provider serving institutions that need digital asset infrastructure in both the EEA and the U.S., while keeping governance and technical standards closely aligned across regions.
Where can institutions learn more about the service?
Institutions that want to explore how this custody framework can support their digital asset strategies can review the dedicated institutional custody information on Kraken’s institutional custody page. There, they find details on security architecture, onboarding and regulatory coverage.
For additional context on how Payward Europe Solutions Limited is licensed under MiCA, firms can refer to regulatory information published by the Kraken regulatory status documentation and by authorities such as the Autorité des Marchés Financiers.
In summary, the expansion of kraken custody under MiCA through PESL in Ireland, combined with the existing U.S. qualified solution, delivers a cohesive, regulated infrastructure for institutions seeking long-term exposure to digital assets.
