Kraken Financial can now directly use the payment systems of the US Federal Reserve, thanks to approval from the Kansas City (State of Missouri) Fed. However, they don’t have full banking powers, including earning interest on reserves.
The Wall Street Journal said on Wednesday that US cryptocurrency exchange Kraken is the first company to get a master account from the US Federal Reserve.
According to The WSJ, Kraken Financial, the exchange’s banking unit, has been given access to the Fed’s most important payment systems. This means that the platform can transfer money on the same rails, or infrastructure, that banks and credit unions use.
The Federal Reserve Bank of Kansas City, which looked over the proposal, and Kraken, which trades as Payward, are likely to say on Wednesday that it has been approved.
The news is a big step forward for the US crypto business, but the clearance doesn’t give banks all the services they offer, such as paying interest on reserves maintained at the central bank.
For years, several crypto firms in the US have been trying to get a master account with the Fed. Caitlin Long’s Custodia Bank is working even harder to get one by filing a court petition in late 2025.
Signals of a softer regulatory approach
Eleanor Terrett, a journalist, said in an X article that the move is a “historic shift” for the US crypto business. She pointed out that it shows the Fed is taking a softer stance, which opponents said was unfriendly to crypto during the previous administration.
The decision also implicitly acknowledges that the Fed thinks Kraken has enough anti-money laundering and sanctions compliance practices to reduce the risk of illegal finance and that Wyoming’s rules for special purpose depository institutions are in line with federal banking standards.