BroadChain has learned that on March 5, The Wall Street Journal reported Kraken Financial—the banking arm of the cryptocurrency exchange Kraken—has secured approval from the Federal Reserve for a "master account." This makes it the first crypto company to gain direct access to the Fed's core payment infrastructure, putting it on par with thousands of traditional banks and credit unions for payment processing.
With this account, Kraken Financial can now connect directly to the Fedwire Funds Service, the Federal Reserve's interbank payment network that handles over $4 trillion in daily transfers. Previously, the company had to rely on intermediary banks to move funds.
Kraken Financial operates under a special-purpose depository institution charter granted by the state of Wyoming, a framework created specifically for crypto businesses. The approval is for a limited master account, which does not include full banking privileges such as holding reserve balances at the Fed to earn interest.
Arjun Sethi, Co-CEO of Kraken, said the move will improve the reliability and efficiency of moving fiat currency into and out of digital asset markets.
The decision has drawn criticism from banking industry groups. Paige Pidano Paridon, Co-Head of Regulatory Affairs at the Bank Policy Institute, argued that the approval process lacked transparency and questioned the risk-mitigation measures in place.
Kraken was founded in 2011. It completed a funding round at a $20 billion valuation in November 2025 and has filed plans for an initial public offering.