Kraken Financial has gained direct access to US Federal Reserve’s payment systems via a Kansas City Fed approval, though without full banking privileges such as interest on reserves.
US cryptocurrency exchange Kraken has become the first company to secure a master account from the US Federal Reserve, The Wall Street Journal reported Wednesday.
Kraken Financial, the exchange’s banking unit, has gained access to the Fed’s key payment systems, allowing the platform to move money on the same rails used by banks and credit unions, according to The WSJ.
The Federal Reserve Bank of Kansas City, which oversaw its application, and Kraken, trading as Payward, are expected to announce the approval Wednesday.
The news marks a significant milestone for the crypto industry in the US, though the approval does not provide the full range of services available to banks, including payment of interest on reserves held at the central bank.
Several crypto companies in the US have been pursuing a master account with the Fed for years, with Caitlin Long’s Custodia Bank doubling down on efforts to obtain one through a court petition in late 2025.
A “historic shift” for the US crypto industry
The decision marks a “historic shift” for the crypto industry in the US, journalist Eleanor Terrett wrote in an X post, highlighting that it signals a softer tone at the Fed, which critics had previously described as hostile to crypto under the prior administration.
“The decision also impliedly recognizes that the Fed believes Kraken has sufficient anti-money laundering and sanctions compliance practices to curb illicit finance risk, and that Wyoming’s regulatory framework for special purpose depository institutions is in line with Federal banking standards,” Terrett said.
Kraken did not immediately respond to Cointelegraph’s request for comment.
Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns