Kraken Receives Federal Reserve Master Account Approval After Five-Year Review

Kraken has received approval for a Federal Reserve master account, making it the first cryptonative company with direct access to the Fed's core payments infrastructure, according to a report. The access allows Kraken to hold reserves and settle transactions via systems such as Fedwire without relying solely on intermediary banks. The approval, in process for five years, is expected to serve as a pilot for a proposed "skinny" master account model that would provide payments access without extending traditional bank lending privileges.