Kraken has launched a new peer-to-peer payments app called 'Krak', enabling users to send both fiat and cryptocurrency across borders.

Supporting over 300 currencies, Krak aims to compete with established financial apps like PayPal, Venmo, and Cash App.

This launch follows the resolution of a lawsuit from the U.S. Securities and Exchange Commission, allowing Kraken to advance its product development.

Krak is part of Kraken's broader strategy to expand beyond cryptocurrency and prepare for a public offering in 2026.

Kraken co-CEO Arjun Sethi highlighted the advantages of using public blockchains for real-time global transactions, which lead to faster settlements and lower fees.

The app offers users the opportunity to earn rewards of up to 4.1% on USDG stablecoin balances and up to 10% on other digital assets.

Sethi emphasized that Krak is designed to make financial services universally accessible, asserting that money should move as easily as information.

Krak will soon include physical and virtual debit cards for spending at merchants worldwide, along with lending and credit tools.

In addition to facilitating transfers, users will be able to earn yields through stablecoin products within the app.

Krak's user-friendly naming system, 'Kraktags', simplifies cryptocurrency transactions by replacing complex blockchain addresses.

As the U.S. increasingly embraces cryptocurrency, Kraken and other exchanges are expanding their services to include crypto-based payment solutions.

The app features a unique identifier, 'Kraktag', which simplifies transactions by eliminating the need to link a bank account.