Kraken Becomes First Crypto Firm with Fed Payments Access
In a major step for crypto-banking integration, Kraken has reportedly become the first crypto company to gain access to the Federal Reserve's core payments system. The move, reported by the Wall Street Journal, gives the exchange a direct line into the traditional U.S. financial infrastructure.
This direct pipeline to the Fed’s payment systems, including Fedwire, is a first for a digital asset bank in the U.S. It allows Kraken Financial to bypass intermediary banks, theoretically enabling faster and more cost-effective fiat transactions for its institutional clients. The move is the culmination of over five years of regulatory engagement with both Wyoming and U.S. supervisors. Kraken's access comes via its Wyoming-chartered Special Purpose Depository Institution (SPDI), Kraken Financial. This specific type of bank charter, which Kraken was the first to receive in 2020, allows it to take deposits and offer custody and fiduciary services for digital assets without requiring FDIC insurance, as it is not permitted to make loans. The approval from the Federal Reserve Bank of Kansas City grants Kraken a master account, the same type of account held by traditional banks to conduct settlements. However, the access is described as limited; for instance, Kraken Financial will not earn interest on reserves held at the central bank and won't have access to the Fed's lending facilities. This milestone stands in stark contrast to the experience of other crypto-focused financial institutions. Custodia Bank, another Wyoming-chartered SPDI, had its application for a master account denied by the Fed, a decision that was upheld by the 10th Circuit Court of Appeals in late 2025. The court affirmed the Federal Reserve's discretion to deny access based on perceived risks.
