Kraken becomes first crypto company to secure Fed master account access: WSJ

Kraken Financial, the banking arm of the crypto exchange Kraken, has become the first crypto firm to obtain a Federal Reserve master account, granting its unit direct access to the Fed's core payment systems, including Fedwire. This direct access allows Kraken to settle payments itself, potentially speeding up U.S. dollar deposits and withdrawals for large traders and institutional clients, bypassing the need to rely solely on partner banks. However, the approval is limited; Kraken will not receive the full suite of services available to traditional banks, such as earning interest on reserves or accessing the Fed’s emergency lending. Kraken Financial operates under a Wyoming charter, and the application was overseen by the Federal Reserve Bank of Kansas City. This development comes as Kraken's parent company, Payward, continues strategic acquisitions while the exchange reportedly moves toward a potential initial public offering (IPO).

(Source：CoinDesk)