Kraken's surprise Fed win may harken onslaught of crypto firms with narrow Fed access

Kraken's Wyoming-chartered banking arm, Payward Financial, received provisional, limited "Tier 3" access to the Federal Reserve payment system via the Kansas City Fed. This milestone, which grants direct access to Fed Wire, has aggravated traditional bankers who cite significant regulatory risks, but it has energized the crypto industry, suggesting a trend of wider access for digital asset firms.

Analysts believe this could pave the way for other firms like Circle, Anchorage, and Custodia to gain similar limited master accounts, especially given the Fed's ongoing, early-stage process to define policies for these "skinny" accounts. Kraken's CEO stated this development signifies crypto infrastructure maturing into core finance, enabling instant settlement and institutional-grade cash management.

However, the move has drawn criticism from banking groups like the Independent Community Bankers of America and the Bank Policy Institute for lacking transparency and potentially ignoring public feedback on the framework, creating uncertainty as regional Fed banks make decisions before a unified national policy is established.

(Source：CoinDesk)