US cryptocurrency exchange Kraken has broken new ground after securing a coveted master account from the Federal Reserve, becoming the first digital asset firm in the country to gain direct access to the central bank’s payment infrastructure.
According to a Wednesday report by The Wall Street Journal, Kraken’s banking arm, Kraken Financial, received approval from the Federal Reserve Bank of Kansas City, which oversaw the application process. The exchange, which operates under the legal name Payward, is expected to formally announce the decision alongside the regional Fed branch.
🚨NEW: @krakenfx, the U.S.’s second-largest crypto exchange, has just done something no other crypto firm has done before: secured coveted access to the Federal Reserve.
According to a report by the @WSJ released this morning, the exchange’s banking arm, Kraken Financial, has…
— Eleanor Terrett (@EleanorTerrett) March 4, 2026
Direct access to the Fed’s payment rails
A master account allows financial institutions to access the Federal Reserve’s core payment systems, the same infrastructure used by traditional banks and credit unions to move funds across the US financial system.
For Kraken, this means it can settle payments directly with the Fed rather than relying on intermediary banks. However, the approval stops short of granting full banking privileges. Kraken Financial will not be entitled to receive interest on reserves held at the central bank, a benefit typically available to federally chartered banks.
The move nonetheless represents a major operational upgrade, potentially lowering costs, improving efficiency, and strengthening trust in the exchange’s fiat settlement processes.
A “historic shift” in regulatory tone
Industry observers have described the decision as a turning point. Journalist Eleanor Terrett called it a “historic shift,” suggesting it reflects a softer regulatory stance toward crypto compared to previous years, when critics accused regulators of being openly hostile to digital asset firms.
The approval also signals that Kraken’s anti-money-laundering and sanctions-compliance controls meet federal standards. It further validates Wyoming’s special-purpose depository institution framework, which has attracted crypto-native banking applicants, including Custodia Bank, founded by Caitlin Long.
Meanwhile, Kraken announced sponsorship of Trump Accounts for every child born in Wyoming in 2026, providing a financial seed contribution to each newborn’s account to foster long-term capital formation.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
