Kraken Financial Becomes First Crypto Firm to Secure Limited-Purpose Fed Master Account

Kraken Financial, the banking subsidiary of Kraken, has obtained access to a limited-purpose master account at the Federal Reserve Bank of Kansas City, marking the first time a crypto-associated company has secured direct connectivity to the Fed's infrastructure, CryptoPotato reports. The account enables Kraken Financial to interface directly with core Federal Reserve payment systems such as Fedwire for settlement and dollar movements, reducing reliance on intermediary banks that previously handled fiat transfers for crypto platforms. The access differs from standard commercial bank master accounts, as Kraken Financial cannot earn interest on reserves held at the Fed or access the Federal Reserve's lending facilities under the current arrangement.