Kraken to launch agentic trading as crypto exchanges evolve beyond crypto

Kraken is set to relaunch its app, featuring a groundbreaking approach to trading known as agentic trading, which could redefine the competitive landscape for cryptocurrency exchanges, according to an exclusive statement made to CNBC. This innovative form of trading utilizes AI agents that autonomously make trading decisions and execute transactions based on user inputs. Unlike traditional automated trading systems that adhere to fixed rules, agentic trading platforms are designed to analyze various factors, learn from new data, and pursue objectives as defined by the user within established parameters. Kraken's new platform aims to empower users with agents that can monitor market trends, spot investment opportunities, and carry out trades instantly. This move reflects a broader industry trend where artificial intelligence is increasingly integrated into financial products, transforming how investors engage with the market. Kamo Asatryan, Kraken's chief data officer, emphasized that AI could help everyday investors react to market conditions similarly to seasoned traders. He noted that even in bearish markets, professional traders remain active, and it is crucial for regular customers to have comparable capabilities and information. The onboarding process within the app leverages AI to understand each user's goals, risk tolerance, and financial situation in a cohesive manner. Based on this data, the AI generates a preliminary portfolio for users to review and modify, providing insights into its recommendations. Once users begin investing, they will receive tailored insights and proactive suggestions, such as ways to optimize unutilized funds. The platform's ambition is to create an interactive experience that feels like consulting a knowledgeable friend who understands your financial aspirations and can guide you through various assets and market options without requiring you to become a professional trader. This strategy signifies a significant shift, wherein AI is not merely an additional feature but a core component of financial services, enhancing user engagement and retention. Asatryan highlighted the potential for AI to democratize access to trading opportunities, allowing everyday individuals to engage in high-frequency trading using straightforward language. This shift could bridge the gap that traditionally separated professional traders from the average investor. Kraken's move aligns with a wider industry trend, as competitors like Coinbase and Gemini have also begun incorporating AI into their trading platforms. Asatryan views the integration of AI in cryptocurrency as a genuine growth opportunity, rather than a passing trend, especially during a prolonged bear market, which usually prompts innovation within the sector. Founded in 2011, Kraken is one of the longest-standing crypto exchanges, with a user base that includes institutions and active traders. Asatryan expressed a vision for Kraken to expand beyond its exchange roots, aiming to develop a comprehensive financial services platform encompassing payments, banking, and lending. He believes that with advancements in stablecoins and tokenized assets, the potential for broader access and utility in the financial sector is immense, and AI will play a pivotal role in making these services accessible to all.