Kraken Financial Wins Federal Reserve Master Account, Gaining Direct Fedwire Payment Access

Kraken Financial has obtained a Federal Reserve master account from the Federal Reserve Bank of Kansas City, giving the Kraken banking unit direct access to the Fedwire network for U.S. dollar payment settlement in central bank money without using intermediary banks. The master account, described as a limited-purpose or "skinny" structure and aligned with discussions by Federal Reserve Governor Christopher Waller, is held under Kraken Financial's Wyoming special-purpose depository institution charter, which is designed for digital asset firms that keep customer deposits fully reserved. The exchange said that direct Fedwire connectivity is expected to speed up deposits and withdrawals and streamline liquidity management for large traders and institutional clients. The decision follows more than five years of review since the initial filing in October 2020 and comes as parent company Payward expands via acquisitions, including the 2024 purchase of futures platform NinjaTrader for $1.5 billion, derivatives venue Small Exchange for $100 million, and tokenization-focused Backed Finance.