Kraken Integration

We are excited to announce the integration of Kraken into the Dfns platform, enhancing the centralized exchange experience for our customers. This integration opens up seamless and secure access to Kraken’s exchange functionalities directly within the Dfns platform. With a primary focus on security and API key management, this marks a significant milestone for centralized exchange support on Dfns.

This Kraken integration is part of a larger initiative at Dfns to support centralized exchange connectors. Alongside Kraken, we will also soon announce support for Coinbase, Binance, OKX, and Bitstamp (Robinhood), with plans to expand to other exchanges in the future. Our goal is to provide an extensible framework that allows our customers to connect their accounts and leverage our secure wallet infrastructure for frictionless fund management.

Kraken, our first exchange integration

Exchange Integration is a powerful new feature that allows you to deposit and withdraw funds directly between your Dfns wallet and supported cryptocurrency exchanges. Say goodbye to the hassle of manual transfers or juggling multiple platforms – with our new Exchange Integration, you can manage your digital assets seamlessly and securely from one unified interface.

We're proud to partner with Kraken for our initial launch. As one of the largest and most trusted cryptocurrency exchanges in the world, Kraken's strong security measures and wide range of supported assets perfectly align with our vision for secure and efficient asset management.

With this integration, you can now:

• Check your Kraken account balances right from your Dfns wallet dashboard.
• Deposit funds from your Dfns wallet into Kraken, supporting assets across multiple networks.
• Withdraw funds from Kraken to your Dfns wallet quickly and securely.

Safety is our topmost priority

Security is at the forefront of our Kraken integration. Centralized exchange integrations rely on API keys, which can unlock significant access to funds. Kronos Research, a crypto trading firm, was hacked in November 2023, resulting in a loss of around $26 million. Unlike many other hacks, this attack didn't involve the theft of private keys. Instead, the hacker exploited the firm's API keys as explained by our auditors Halborn. API key security, particularly in crypto, is important enough to warrant its own dedicated blog post, which we'll cover soon. In this article, we want to provide a high-level overview of the feature.

Our Exchange Integration has three main security features:

1. Encrypted API key storage: Your API keys are securely encrypted and stored in AWS Key Management Services. They are only decrypted when you provide a signature, ensuring your sensitive information stays protected at all times. Each time you need to retrieve an API key, whether for setting up or issuing a transfer, the wallet administrator must provide a cryptographic signature (except for the read-only keys).
2. Separate API keys for read and write: We use two separate pairs of API keys for added security—one for reading data (like viewing balances) and one for writing (like deposits or withdrawals). Write keys are only activated when you sign a transaction, giving extra protection to your funds.
3. Strong 2FA recommendation: Kraken already offers strong internal security, but we recommend enabling two-factor authentication (2FA) for withdrawals to further protect your assets.

This ensures that API keys are only accessed when absolutely necessary and are never openly exposed within the dashboard. Customers can update their API keys but cannot retrieve them, ensuring the safety of sensitive credentials. Once again, we strongly recommend that users enable two-factor authentication (2FA) on Kraken for withdrawals. Whether validating with an email link or inputting a TOTP code, additional layers of security are in place to protect your funds.

What this integration opens up

This integration with Kraken brings new capabilities to Dfns users, enabling seamless management of funds between centralized exchanges and Dfns wallets. Here's a snapshot of the key features:

• Account linking: Connect your Kraken account by entering your API keys, allowing Dfns to manage deposits and withdrawals between your Kraken account and Dfns wallets.
• Real-time balances: See your Kraken balances and supported assets without leaving the Dfns dashboard.
• Rapid transfers: Quickly and easily initiate deposits and withdrawals between Dfns and Kraken with just a few clicks.
• Security details: Get clear information on how your API keys are securely encrypted, and the difference between read-only and write keys for enhanced security.

As part of our next iteration, we will add:

• Transfer history: View a full log of all your transfers, including deposits, withdrawals, and internal fund movements, ensuring transparency and easy auditing.
• Policies integration: Create policies governing exchange withdrawals. 

Easy API access for developers

We're excited to announce that Exchange Integration is now available via API. Developers can easily add this feature to their applications, offering more flexibility and control when managing funds across multiple exchanges. Users can now:

• List connected exchanges: Import the full list of exchanges you integrated with Dfns.
• Add or update API keys: Easily manage exchange API keys to keep access up to date.
• Initiate transfers: Trigger deposits and withdrawals between Kraken and Dfns wallets, with full support for multi-network transactions.
• [Coming up] Track transfers: Monitor the status of transfers and view the full history of account activity for clear, reliable record-keeping.

For detailed instructions and endpoints, check out our API documentation.

How to get started today

Setting up Exchange Integration is simple:

1. Log in to your Dfns account.
2. Go to Settings > Exchanges.
3. Click 'New' to add your exchange.
4. Enter your Kraken API keys (both read and write keys).
5. If you want to withdraw, whitelist withdrawal wallet assets in Kraken
6. You're done! Once connected, you can manage your funds between Dfns and Kraken.

Need more help? Watch this tutorial for step-by-step guidance.