Kraken Secures Federal Reserve Access in Landmark Move for Crypto Industry

Kraken has achieved a regulatory milestone that eluded crypto firms for years: direct access to the Federal Reserve’s payment infrastructure. Its Wyoming-chartered bank, Kraken Financial, now holds a master account, enabling USD settlements without intermediary banks. The Fed approved the arrangement as a Tier 3 limited-purpose account with a one-year initial term.

This development offers the digital-asset sector a tangible model for Fed access—arriving as policymakers debate narrower forms of central bank connectivity. Kansas City Fed President Jeff Schmid emphasized evolving payment systems while prioritizing stability: "The payments landscape is actively evolving... the integrity of the US payments system remains our priority."

The approval signals a potential shift in how fintech and crypto firms interact with core banking rails. Kraken’s account serves as a real-world test case for a payments-focused access model under discussion in Washington.