Kraken wins Fed master account approval, a first for the crypto industry

Kraken’s banking division, Kraken Financial, has achieved a significant milestone by obtaining a Federal Reserve “master account,” granting it direct access to Fedwire, the core U.S. interbank payment system. This approval allows Kraken Financial to transfer funds directly over the same infrastructure used by traditional banks for high-value dollar settlement, speeding up fiat movements for its institutional and professional trading clients, bypassing intermediary banks. While this connects Kraken directly to the Fed’s payment infrastructure, it does not include all services available to conventional banks, such as earning interest on reserves. Kraken co-CEO Arjun Sethi stated this positions them as a directly connected financial institution. This regulatory success is notable given past rejections for similar crypto-focused entities like Custodia Bank, and it comes amid ongoing regulatory debates in Washington concerning digital assets and stablecoins. The development also supports Kraken's parent company, Payward Inc., which filed confidentially for a U.S. IPO and has been expanding through acquisitions like NinjaTrader and Magna.

(Source：The Block)