Kraken secures Federal Reserve master account
6.6 Banking Kraken Financial is the first crypto firm to gain a Federal Reserve master account, enabling direct access to U.S. payment systems and reducing reliance on intermediary banks.
Kraken Financial, the Wyoming-chartered banking subsidiary of cryptocurrency exchange Kraken, has become the first digital asset company in U.S. history to secure a Federal Reserve master account. This approval, granted by the Federal Reserve Bank of Kansas City, gives Kraken direct access to the core payment infrastructure used by U.S. banks and credit unions. As a result, Kraken can settle U.S. dollar transactions directly through the Fed’s system, bypassing intermediary banks and reducing counterparty risk and operational friction for institutional clients and professional traders. This milestone represents a significant step toward integrating digital asset platforms with the traditional financial system. However, the approval comes with limitations: Kraken will not earn interest on reserves held at the central bank or have access to the Fed’s emergency lending facilities, privileges reserved for traditional depository institutions. The decision also affirms that Kraken’s compliance practices meet federal standards and that Wyoming’s Special Purpose Depository Institution (SPDI) regulatory framework aligns with federal banking requirements. This development is widely seen as a historic milestone for the crypto industry.
