Kraken just got rare Federal Reserve access in a move crypto firms have chased for years

Kraken's Wyoming-chartered bank, Kraken Financial, was granted a one-year, limited-purpose Federal Reserve master account, allowing it to settle US dollar payments directly via Fed infrastructure instead of relying on sponsor banks. This marks a significant regulatory achievement sought by crypto firms for years and serves as a real-world test for the Fed's evolving policy on narrower central bank access, separating settlement access from traditional banking safety nets. This approval fits into the Fed's broader plan to potentially offer 'Payment Accounts' that provide limited settlement services without the full benefits of traditional master accounts. For the crypto industry, direct settlement reduces reliance on intermediary banks, improving speed and resilience, but it also raises the regulatory bar, potentially creating a divide between firms that can meet bank-like standards and those that cannot.

(Source：CryptoSlate)