Kraken, the cryptocurrency exchange, has integrated with Mesh, a crypto payments network, to allow users to move crypto directly from another exchange account without copying or pasting a wallet address. The feature is designed to address one of the more error-prone steps in crypto transfers, where selecting the wrong network or mistyping an address can result in lost funds with no means of recovery.
Within Kraken's existing deposit flow, users selecting a crypto asset and network are now presented with an additional option to deposit from 'another exchange', alongside the standard wallet address and QR code method. Selecting this option opens a Mesh window, where users choose the exchange they are transferring from, sign in to that platform, and confirm the amount to be sent. Some exchanges, such as Coinbase, use their own login window during this step. Once confirmed, the crypto is sent on-chain to the user's Kraken deposit address and credited in the same way as any other on-chain deposit. If the process is cancelled or the window closed before completion, no transfer is initiated.
The integration also includes a feature called SmartFunding, which allows a deposit to be topped up using other balances held on the same external exchange. For example, a user wishing to deposit 10,000 USDC but holding only 7,000 USDC on the source exchange can have Mesh convert approximately 3,000 USDC worth of other holdings to complete the transfer in a single step. Any trading, network, or conversion fees applied to that portion are set by the external exchange rather than by Kraken.
Partnership structure and data handling
The feature is built on Mesh's payments network, which connects exchange accounts to facilitate transfers between platforms. Mesh manages the authentication process with the external exchange, including any two-factor verification steps, in a manner comparable to how account-linking services such as Plaid connect to banking platforms. Kraken has stated that it does not see or store login credentials for the external exchange involved in the transfer.
At launch, the feature supports connections to Coinbase, subject to local availability, with additional exchanges expected to be added. Users whose exchange is not yet supported can continue to use the standard wallet address deposit method. The option is currently available through the Kraken website, with support for mobile platforms planned for a later date.
Kraken has confirmed that it does not charge a fee for using this deposit method, though the external exchange may apply its own withdrawal or network fees, determined independently of Kraken.
Industry context
The launch reflects a broader trend among crypto exchanges to reduce the operational friction associated with on-chain transfers, particularly for users managing balances across multiple platforms. Address-based transfers have long been cited as a source of user error within the crypto sector, given the irreversible nature of blockchain transactions. Partnerships between exchanges and payments infrastructure providers such as Mesh point to continued efforts to standardise account-to-account transfer processes across the industry.
