Kraken is the first cryptocurrency company in the US to receive a Fed Master Account for professional and corporate clients.
Kraken secured access to the Federal Reserve’s core payment system through a master account at its banking arm, Kraken Financial, allowing it to move funds over the same infrastructure used by traditional banks and credit unions, the company told The Wall Street Journal.
Although the company does not have access to all of the Fed’s services, the approval is a major milestone for the crypto sector after multiple failed attempts to tap into the Fed’s infrastructure.
The development comes as the Trump administration pushes ahead with policies aimed at positioning the country as a global hub for digital assets.
President Trump has appointed regulators deemed supportive of the industry and supported efforts to establish a clearer legal framework for crypto businesses.
Direct access to the Fed could allow institutional investors and professional traders to move money faster and more reliably, reducing their dependence on intermediary banks.
The move could also encourage other crypto-focused financial institutions to pursue similar arrangements, as regulators become increasingly open to industry participation in traditional payment networks.
Kraken made history in 2020 as the first U.S. cryptocurrency exchange to receive a banking charter when the state of Wyoming approved special purpose depository institutions. Operating as Kraken Financial, it provides digital asset custody, depository, and fiduciary services, connecting cryptocurrencies to traditional banking.
Disclosure: This article was edited by Vivian Nguyen. Please see our Editorial Policy for more information on how we create and review content.
