Kraken's banking unit has gained direct access to the Federal Reserve's payments system through a limited-purpose account. This makes it the first U.S. digital-asset bank to achieve this, deepening the sector's reach into mainstream finance.
The master account allows Kraken Financial to link directly to core U.S. payment systems like Fedwire, bypassing intermediary banks. This enables faster, more efficient fiat transfers for institutional clients, while reducing operational complexity and costs.
While not granted the full privileges of traditional banking institutions, the move is a major win for the digital-assets industry as it seeks greater integration into traditional markets and attracts institutional investor interest.
"This milestone marks the convergence of crypto infrastructure and sovereign financial rails," stated Arjun Sethi, Co-CEO of Payward and Kraken. "With a Federal Reserve master account, we can operate not as a peripheral participant in the U.S. banking system, but as a directly connected financial institution."
The account, approved for an initial one-year term, will roll out services in phases, beginning with institutional client activity.