Kraken Financial Receives First Federal Reserve Master Account for U.S. Crypto Bank

Kraken Financial, the Wyoming-based unit of Kraken, has received a Federal Reserve master account, becoming the first crypto asset bank in U.S. history to gain direct access to the Fed's payment infrastructure including Fedwire for dollar transfers without correspondent banks, the company said. The master account, granted after more than five years of regulatory review and overseen by the Federal Reserve Bank of Kansas City, provides limited access excluding interest on reserves and emergency lending facilities. Kraken Financial operates as a Wyoming Special Purpose Depository Institution under a full-reserve model holding liquid assets equal to or exceeding 100% of customer cash deposits, and plans a phased rollout starting with enhanced dollar settlement for institutional clients on the Kraken platform before deeper integration with parent Payward. Kraken views the approval as advancing integration of crypto services with the traditional U.S. financial system and strengthening its institutional offering ahead of a potential public listing.