Kraken said its Wyoming-chartered bank, Kraken Financial, has received a Federal Reserve master account, giving it direct access to the US payments system.
The approval makes Kraken Financial the first digital asset bank in the United States to connect directly to the Federal Reserve’s payment infrastructure. The move is a major step for the company’s institutional business and brings crypto services closer to the traditional banking system.
With the account, Kraken Financial can access key payment rails such as Fedwire without relying on intermediary banks. Kraken said this should make US dollar transfers faster, simpler and more efficient for institutional clients, while also lowering costs and reducing operational risk.
The company said the approval follows more than five years of work with regulators and reviews by federal and Wyoming state authorities.
Kraken Financial is a Wyoming-chartered Special Purpose Depository Institution, or SPDI, which operates under a full-reserve model and holds liquid assets equal to or greater than client fiat deposits.
Kraken said it will roll out the new payment capabilities in phases, starting with support for institutional clients and expanding over time.
Featured image from: kraken.com