Key Points
- Kraken gains access to the Federal Reserve’s core payments system through a master account.
- Approval marks a major step toward closer integration between crypto firms and traditional banking.
On March 4, the crypto sector moved closer to mainstream financial integration after The Wall Street Journal reported that Kraken became the first crypto company granted access to the Federal Reserve’s core payments system.
Founded in 2011 in San Francisco, Kraken is among the longest-operating digital asset exchanges in the industry.
Federal Reserve Master Account Approval
The exchange stated that its banking division secured a master account, enabling it to move funds directly through the same infrastructure used by thousands of U.S. banks and credit unions.
With this access, Kraken Financial can process transactions for institutional clients and professional traders without relying on intermediary banks.
According to The Wall Street Journal, U.S. Senator Cynthia Lummis described the development as a significant milestone for digital assets.
Final confirmation of the approval is expected from the Federal Reserve Bank of Kansas City and Kraken’s parent company, Payward.
Regulatory Context and Industry Developments
In 2025, the Federal Reserve’s board of governors proposed allowing fintech payment companies and crypto firms to apply for access to its payment systems.
While some traditional financial institutions have expressed concerns, crypto firms have sought regulatory approval to compete more directly with banks.
In December 2025, the Office of the Comptroller of the Currency approved applications from five crypto companies, including Circle and Ripple, to form national trust banks that can provide services such as digital asset custody but cannot accept deposits or issue loans.
The announcement comes as Bitcoin (BTC) traded above $71,000 on March 4, reflecting a 7% gain over the previous 24 hours.
