Kraken vs Cash App — Head-to-Head Custody Comparison

An independent, data-driven comparison of Kraken and Cash App across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Kraken scores 7.6 vs Cash App's 6.7. Kraken leads in 5 of 8 categories.

Kraken is better suited for Active traders, Security-conscious exchange users, International users. Cash App is better suited for Mainstream users, Beginners, Small investors.

7.6

GoodCustody Score

Kraken

6.7

FairCustody Score

Cash App

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Kraken	Cash App	Winner
Security	20%	8.5	7.0	Kraken
Insurance	15%	5.5	5.0	Kraken
Regulatory	15%	8.0	8.0	Tie
Fee Transparency	10%	8.0	5.5	Kraken
Track Record	15%	9.0	7.5	Kraken
Withdrawal Flexibility	10%	8.5	8.5	Tie
Reporting & Audit	10%	8.0	7.0	Kraken
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	7.6	6.7	Kraken

Visual

Score Radar

Visual overlay of Kraken and Cash App across all categories.

KrakenCash App

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (8.5 vs 7.0)

Kraken uses Exchange hot/cold wallet system key management with 95%+ cold storage in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No major security breaches in 13+ years.

Cash App uses Block Inc. managed custody key management with Majority cold in cold storage and regular penetration testing. Compliance: Block Inc. SOC 2. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Insurance (5.5 vs 5.0)

Kraken offers Not explicitly disclosed via N/A. Maintains significant cold storage reserves. Proof of reserves verified.

Cash App offers Block Inc. corporate insurance via Via Block Inc.. Publicly traded parent company (Block Inc. / SQ).

Regulatory (8.0 vs 8.0)

Kraken holds FinCEN MSB, State money transmitter licenses, FCA registered (UK), AUSTRAC (Australia) and is not a qualified custodian operating in United States / Global. One of the most compliant global exchanges. Bank partnership for USD.

Cash App holds NY BitLicense, State money transmitter licenses, FinCEN MSB and is not a qualified custodian operating in United States. Block Inc. (NYSE: SQ) — publicly traded fintech company.

Fee Transparency (8.0 vs 5.5)

Kraken charges None in annual custody fees with 0.16-0.26% maker/taker per transaction. Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Cash App charges None in annual custody fees with ~1.5-2.5% (spread) per transaction. Convenient but higher spread than dedicated exchanges. Free withdrawals.

Track Record (9.0 vs 7.5)

Kraken was founded in 2011 and is headquartered in San Francisco, CA. AUM: $20B+ in quarterly trading volume. Incident history: No major security breaches in 13+ years.

Cash App was founded in 2013 and is headquartered in San Francisco, CA. AUM: Not publicly disclosed. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Withdrawal Flexibility (8.5 vs 8.5)

Kraken withdrawal fees: Network fees + small flat fee. Minimum account: No minimum. Supported assets: Bitcoin, Ethereum, 200+ cryptocurrencies.

Cash App withdrawal fees: Free Bitcoin withdrawals. Minimum account: No minimum ($1). Supported assets: Bitcoin only.

Reporting & Audit (8.0 vs 7.0)

Kraken: SOC compliance is SOC 2 Type 2. Not classified as a qualified custodian.

Cash App: SOC compliance is Block Inc. SOC 2. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 2.0)

Kraken is a exchange custody provider. Key management: Exchange-managed hot/cold wallet system with proof of reserves..

Cash App is a exchange custody provider. Key management: Bitcoin buying within Cash App payment ecosystem. Block Inc. custody..

Fees

Fee Comparison

Side-by-side fee breakdown for Kraken and Cash App.

Fee Type	Kraken	Cash App
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0.16-0.26% maker/taker	~1.5-2.5% (spread)
Withdrawal	Network fees + small flat fee	Free Bitcoin withdrawals

Kraken: Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Cash App: Convenient but higher spread than dedicated exchanges. Free withdrawals.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Kraken	Cash App
13+ year track record	✓	✗
24/7 customer support	✓	✗
50M+ monthly users	✗	✓
95%+ cold storage	✓	✗
Auto-invest (DCA)	✗	✓
Free Bitcoin withdrawals	✗	✓
Futures and margin trading	✓	✗
Lightning Network support	✗	✓
Mainstream accessibility	✗	✓
Proof of reserves	✓	✓
Staking services	✓	✗

Recommendation

Who Should Choose Which?

Kraken is better if you…

✓Are a active traders
✓Are a security-conscious exchange users
✓Are a international users
✓Are a stakers
✓Want: 13+ year track record with zero major breaches
✓Want: Proof of reserves — verified by third party
✓Want: 95%+ assets in cold storage

Cash App is better if you…

✓Are a mainstream users
✓Are a beginners
✓Are a small investors
✓Are a cash app existing users
✓Want: Most accessible Bitcoin on-ramp — 50M+ users
✓Want: Free Bitcoin withdrawals
✓Want: Publicly traded parent (Block/SQ)

FAQ

Frequently Asked Questions

Is Kraken or Cash App better for Bitcoin custody?

Kraken scores 7.6 vs 6.7 in our weighted Custody Score. Kraken leads in 5 of 8 scoring categories. However, the best choice depends on your specific needs: Kraken is best for Active traders and Security-conscious exchange users, while Cash App suits Mainstream users and Beginners.

What is the difference between Kraken and Cash App?

Kraken is a exchange custody provider, while Cash App is a exchange custody provider. Kraken excels in Track Record, whereas Cash App is strongest in Withdrawal Flexibility.

How do Kraken and Cash App fees compare?

Kraken charges None annual custody fees with 0.16-0.26% maker/taker transaction fees. Cash App charges None annual custody fees with ~1.5-2.5% (spread) transaction fees.

Which is more secure, Kraken or Cash App?

Kraken scores 8.5/10 for security while Cash App scores 7.0/10. Kraken uses Exchange hot/cold wallet system key management, and Cash App uses Block Inc. managed custody.