US EditionKraken's Banking Arm Becomes First Crypto Firm to Secure Payments Account with Fed
Kraken Financial gained direct access to the Federal Reserve's payment systems, enabling faster settlements for institutional clients while lacking interest on reserves and emergency lending.
- Gaining a master account, Kraken Financial received Fed approval, giving Kraken's banking arm direct access to Fedwire, the Fed's core payment system.
- To reduce reliance on correspondent banks, Kraken sought direct Fed access to speed deposits and withdrawals for large traders and institutional clients, fitting Payward's expansion and last month’s Magna acquisition.
- The Federal Reserve Bank of Kansas City oversaw Kraken Financial's application, granting it a master account with direct Fedwire access under a Wyoming charter for crypto-focused banks.
- Regulators limited the approval: Kraken won't earn interest on reserves or access the Federal Reserve's emergency lending, leaving it without full privileges of traditional banks.
- Several rivals have already made public-market debuts, sharpening Kraken's IPO context as Payward acquired Magna last month and last year bought NinjaTrader and Small Exchange, while Kraken expanded by acquiring Backed Finance, issuer of xStocks.
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56 Articles
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Anthony Scaramucci Says Kraken Evolving Into Something 'Much Bigger' After Crypto Exchange Makes History: They Are 'Quietly' Building - Bullish (NYSE:BLSH)
SkyBridge Capital founder and Bitcoin (CRYPTO: BTC) bull Anthony Scaramucci lauded Kraken on Wednesday after the cryptocurrency exchange secured a Federal Reserve master account. Kraken Evolving Into Something ‘Much Bigger,’ Says Scaramucci Scaramucci said on X that Kraken is building a “monster business” through “shrewd acquisitions,” organic growth and the latest Fed approval that gives it direct access to Fedwire, the core payment infrastruct…
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