Kraken becomes first crypto company to get Fed master account: WSJ

Kraken Financial Secures Direct Access to US Federal Reserve Payment Systems

Kraken Financial, the banking unit of cryptocurrency exchange Kraken, has reportedly obtained a master account from the US Federal Reserve, marking a significant milestone for the crypto industry. This approval, granted by the Federal Reserve Bank of Kansas City, allows Kraken Financial to access the Fed's core payment systems, enabling it to move money on the same infrastructure used by traditional banks and credit unions.

Key Implications and Limitations

While this development is considered a "historic shift" by industry observers, it does not grant Kraken Financial the full privileges afforded to traditional banks, such as earning interest on reserves held at the central bank. The approval suggests a potentially softer stance from the Federal Reserve towards the crypto industry, contrasting with previous perceptions of hostility. Journalist Eleanor Terrett noted that the decision implies the Fed's confidence in Kraken's anti-money laundering and sanctions compliance practices, as well as the adequacy of Wyoming's regulatory framework for special purpose depository institutions.

Industry Context

Several US-based crypto firms have sought master accounts from the Federal Reserve for years. Notably, Caitlin Long's Custodia Bank had been actively pursuing one, even resorting to a court petition in late 2025. Kraken's successful acquisition of this access positions it as a pioneer among crypto companies in the US, navigating the complex regulatory landscape to integrate more closely with the traditional financial system.