Kraken Financial Secures First Fed Master Account

Kraken Financial, the banking arm of the cryptocurrency exchange Kraken, has become the first crypto firm to secure a limited-purpose master account from the Federal Reserve, granting it direct access to the central bank's core payment systems.

The approval, announced on March 4, 2026, came from the Federal Reserve Bank of Kansas City after more than five years of regulatory examinations and operational reviews. This master account allows Kraken Financial to connect directly to Fedwire, the Federal Reserve's primary interbank payment network that processes trillions of dollars in transfers daily. Previously, Kraken relied on intermediary banks to handle U.S. dollar transactions, a process that often slowed deposits and withdrawals for clients.

The account operates under a tier 3 classification, tailored to Kraken's business model and risk profile. It provides initial access for one year, with a phased rollout beginning with institutional clients and professional traders. While this enables Kraken to settle payments independently, making transfers faster and more cost-effective, the approval excludes full banking privileges. Kraken Financial will not earn interest on reserves...