- Kraken Financial received a Federal Reserve master account, giving it access to core U.S. payment systems.
- The approval allowed Kraken to use Fedwire, an interbank network that processed more than $4 trillion in daily transfers.
- Supporters called the move a milestone in crypto integration, while some banks warned of potential risks to financial stability.
Kraken’s banking unit reportedly gained access to the Federal Reserve’s core payment systems on Wednesday, marking a major step toward integrating crypto into the traditional financial system.
Kraken, a crypto trading platform, told The Wall Street Journal that the Federal Reserve master account had approved Kraken Financial. This meant they could move money on the same payment rails that are used by thousands of banks and credit unions. According to the report, Kraken could process transactions faster and more efficiently for institutional clients and professional traders.
Additionally, the master account would grant Kraken Financial direct access to Fedwire, a key interbank payment network that processes more than $4 trillion in daily transfers. Previously, Kraken relied on intermediary banks to move funds. Although the approval does not provide the full range of services typically offered by traditional banks, such as earning interest on reserves, it is a significant breakthrough for the crypto industry. The industry had long struggled to gain access to the Federal Reserve system.
Crypto Access To Fed Rails Draws Industry Support
According to the report, supporters, including Senator Cynthia Lummis, called the move a “watershed milestone” for digital assets. However, some banks warned that allowing crypto firms limited access to Fed payment rails could pose risks to financial stability and the broader payments system.
As the U.S. moved toward a more favorable regulatory environment for crypto under President Donald Trump, who pledged to make the U.S. the “crypto capital of the world,” this marked a step towards a positive change.
On Tuesday, Trump said that banks are trying to undermine the GENIUS Act. He warned that these efforts could hurt the United States' goal of becoming a global leader in cryptocurrency. According to a Truth Social post, Trump told lawmakers to quickly move forward with broader legislation on the structure of the crypto market, including the Clarity Act.
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