Overview
- Approved by the Kansas City Fed on March 4, Kraken Financial received a limited-purpose master account that grants direct participation in Fedwire and reduces reliance on correspondent banks.
- The account withholds key bank privileges, including interest on reserves and access to Federal Reserve lending facilities such as the discount window.
- Services will roll out in phases beginning with institutional client activity, according to the company and the regional Fed.
- Banking trade groups including the American Bankers Association, Bank Policy Institute and Independent Community Bankers of America objected, arguing the move preceded finalized Board-level rules and raises illicit-finance and systemic-risk concerns.
- Analysts say the decision could prompt applications from other digital-asset firms, and Kraken’s Wyoming SPDI charter—requiring full-reserve backing and no lending—framed its suitability for payments-only access.