Kraken Breaks Banking Barrier: First Crypto Firm to Plug Directly Into the Fed

Kraken has become the first digital asset company granted a master account at the Federal Reserve, securing direct access to the Fed’s core payments system. Kraken Financial, the exchange’s Wyoming-chartered banking arm, can now settle U.S. dollar transactions on the same payment rails used by thousands of banks and credit unions, bypassing intermediary banks.

The firm will not receive the full suite of services offered to traditional banks, such as earning interest on reserves, and Senator Cynthia Lummis called the move "a watershed milestone." The development builds on Kraken’s 2020 Special Purpose Depository Institution charter from Wyoming, the first bank charter granted to a digital asset company under federal and state law.

That charter enabled regulated deposit-taking, custody and fiduciary services for blockchain companies. Direct settlement capability could allow faster, more seamless transactions for institutional clients and professional traders while reducing counterparty risk and operational friction.

United States, Wyoming

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