Kraken Becomes First Crypto Firm With Fed Master Account
Kraken's banking unit secured direct access to the US Fed's core payment systems, a first for a crypto company.
Kraken just pulled off something no crypto company has done before. Its banking unit scored a "master account" with the US Fed's core payment infrastructure — the same rails used by thousands of banks and credit unions across the country.
This is a big deal. A master account means Kraken can move money the way traditional banks do, without relying on intermediary financial institutions. It's direct access to the plumbing of the US financial system.
For years, crypto firms have struggled to get this kind of access, often getting stonewalled by regulators wary of the industry. Kraken's breakthrough could signal a thawing relationship between crypto and the traditional banking world.
The approval effectively puts Kraken's banking arm on equal footing with established financial institutions when it comes to payment processing. No middlemen required.