Overview
- Kraken’s Wyoming SPDI unit now has direct Fedwire access for dollar settlements, reducing reliance on correspondent banks for institutional flows.
- The limited-purpose account excludes interest on reserves and discount window access, withholding traditional bank privileges.
- The Federal Reserve Bank of Kansas City approved the access after a multi-year review, with services launching first for institutional clients during the initial year.
- Major banking trade groups, including the Bank Policy Institute and the Independent Community Bankers of America, criticized the decision as risky and premature.
- Industry participants say the move sets a precedent that could encourage other crypto firms to seek similar access and provides a practical test of the Fed’s framework.