Kraken Adds Exchange-to-Exchange Crypto Deposits Through…

Kraken has added a new deposit option powered by crypto payments network Mesh that lets users move digital assets directly from another exchange account, removing the need to manually copy wallet addresses between platforms. The feature is now available through Kraken's website, with mobile support planned for a later stage.

The option appears within Kraken's existing deposit flow. After choosing an asset and blockchain network, users can select "another exchange" instead of the standard wallet address or QR code method. A Mesh interface then guides them through selecting the source exchange, signing in, and confirming the transfer amount. Some platforms, including Coinbase, use their own login window during authentication. Once approved, funds are still sent on-chain to the user's Kraken deposit address and credited like any other blockchain deposit. If the process is cancelled before confirmation, no transaction is initiated.

The integration also includes Mesh's SmartFunding feature, which can cover a shortfall using other assets held on the source exchange. For example, a user wanting to transfer 10,000 USDC while holding only 7,000 USDC on the external exchange could have roughly 3,000 USDC worth of other balances converted to complete the transfer. This avoids several manual steps, such as selling another asset, waiting for the trade to settle, and then initiating a separate withdrawal. Any trading, conversion, or network fees related to that part of the transaction are determined by the external exchange. Kraken says it does not charge an additional fee for using the Mesh deposit option, though normal withdrawal or blockchain fees may still apply at the sending platform.

Mesh handles the connection and authentication process with the external exchange, including two-factor verification where required. Kraken says it does not see or store the credentials used to access the other platform. This structure resembles account-linking services in traditional finance, where a third-party provider connects accounts without the receiving platform holding login details.

Coinbase is supported at launch where locally available, with more exchanges expected to be added later. Users whose source platform is not supported can continue depositing through a standard blockchain address. By simplifying exchange-to-exchange transfers, Kraken aims to reduce one of the most common operational risks in crypto: sending funds to the wrong address or network. The underlying transaction remains on-chain, but the interface makes the process feel closer to moving money between linked financial accounts.