Kraken Becomes First Crypto Exchange With Direct Access to Federal Reserve Master Account

Kraken has become the first cryptocurrency exchange to gain direct access to the Federal Reserve's payment system through a Fed master account, the Wall Street Journal reported. Kraken Financial, the platform's banking unit, can now use Fedwire to move funds across the U.S. financial system without relying on intermediary banks, though it does not receive benefits such as interest on reserves or access to emergency lending facilities. The company said the approval advances its vision of acting as a bridge between the crypto economy and traditional finance, following its receipt of a Special Purpose Depository Institution charter in Wyoming in 2020. Kraken said direct Fed access is expected to facilitate faster transaction settlement for institutional clients and professional traders.