Kraken Financial, the Wyoming-chartered banking subsidiary of crypto exchange Kraken, has obtained a master account at the Federal Reserve, granting it direct access to the core U.S. payments infrastructure used by thousands of banks and credit unions, The Wall Street Journal reports. The authorization allows Kraken Financial to settle U.S. dollar transactions directly through the Fed's payment rails instead of routing flows through intermediary banks, though it will not receive the full range of services available to traditional banks, such as interest on reserves at the central bank. Senator Cynthia Lummis described the approval as a watershed milestone for digital assets, and the step builds on Kraken's 2020 Special Purpose Depository Institution charter in Wyoming, which enabled regulated deposit-taking, custody, and fiduciary services for blockchain-focused clients. Kraken has been expanding via acquisitions, including token management platform Magna and futures venue NinjaTrader, and is reportedly targeting a $500 million raise at a roughly $15 billion valuation as it positions for a potential initial public offering.