What is the difference between Kraken Wallet and Kraken Exchange?

Kraken Exchange is a custodial platform. Kraken holds assets in your Kraken account and provides account recovery, trading, funding, and other centralized services subject to availability and eligibility.

Kraken Wallet is an onchain wallet experience. It lets you hold supported assets, send transactions, connect to dApps, swap, and use supported DeFi opportunities.

With a seed phrase wallet, you control the recovery phrase and private keys. Kraken cannot recover the phrase, reverse transactions, or access the wallet. With an embedded wallet, you access the wallet using a supported sign-in method and can export its private keys. Embedded-wallet keys are protected through the wallet provider's secure infrastructure. In either case, both are self-custodial wallets.

You can connect an eligible Kraken account to Kraken Wallet to transfer supported assets from Kraken into your wallet. Connecting the account does not give Kraken access to any of your self-custodial wallets.