Kraken Secures Federal Reserve Master Account, Marking First Ever for Crypto Firms

Kraken's banking arm, Kraken Financial, has achieved a significant milestone by securing a master account from the Federal Reserve Bank of Kansas City, making it the first crypto-native firm to gain direct access to the U.S. central bank's core payment infrastructure, including Fedwire.

This direct access allows Kraken Financial to settle dollar payments without relying on intermediary banks, moving funds on the same rails used by traditional financial institutions. However, the approval comes with limitations; Kraken will not earn interest on reserves held at the Fed nor gain access to its lending facilities.

Industry figures, including Senator Cynthia Lummis, hailed this as a "watershed milestone." The approval suggests the Federal Reserve may be open to granting limited pathways, potentially through "skinny" master accounts, which provide access to payment systems without the full regulatory burden of depository institutions. This development occurs as Kraken's parent company, Payward Inc., prepares for a potential public listing.

(Source：Bitcoin Magazine)