Kraken Financial becomes the first crypto bank to receive a Fed master account, marking a significant milestone in crypto integration with TradFi.
Kraken Financial, then baking arm of U.S. centralized exchange Kraken, announced that it has a Federal Reserve master account, granting it direct access to the U.S. payment systems.
In a blog post published today, March 4, the firm said that the approval marks a major milestone for the integration of crypto with traditional financial railes, and makes Kraken Financial the first crypto-focused bank to receive a master account from the U.S. central bank.
Kraken Financial was previously state regulated, holding a Special Purpose Depository Institution (SPDI) license in Wyoming, making it able to offer both digital asset custody and fiat deposit accounts. The Fed master account connects the bank directly to the central bank’s payment rail, including Fedwire. The firm expects the move to make fiat transactions more effecient for its institutional clients.
Last month, Kraken announced that it will sponsor so-called “Trump Accounts” for every child born in Wyoming this year, via its bank. The parent company of the bank and the CEX, which is the second largest in the U.S. by daily trading volume, is registered in the state, which is generally known for its crypt-friendly legislation efforts.
Both Ripple and crypto-focused, federally chartered bank Anchorage Digital have applied for Fed master accounts last year, but have yet to receive them.
This article was generated with the assistance of AI workflows.
