Kraken Secures Access to Fed’s Core Payment Systems: WSJ
Kraken Financial, the banking arm of crypto exchange Kraken, has secured approval for a Federal Reserve master account, granting it direct access to the Fed’s core payment systems. The Kansas City Fed will announce the decision, which aims to improve the reliability and efficiency of moving fiat money into and out of digital-asset markets. The master account gives Kraken regulated access to maintain balances at the central bank, but with some limitations—such as no interest paid on reserves—reflecting a streamlined account model proposed by the Fed for payment-focused institutions. Other crypto firms, including Circle, Ripple, Paxos, Bridge, and Crypto.com, have received conditional approval for trust bank charters from the OCC, allowing them to offer certain bank-like digital asset services. Coinbase and World Liberty Financial have also applied for similar status, although the latter's application has faced political scrutiny. Traditional banking groups, such as the American Bankers Association, are lobbying for a pause on crypto bank applications until clear legislative rules are established.
