Kraken Financial becomes first crypto firm with direct Federal Reserve master account and Fedwire access

Kraken Financial obtained access to a Federal Reserve master account, becoming the first crypto firm with direct connectivity to the Fed's core payments system including Fedwire, Kraken co-CEO Arjun Sethi said in a post shared by Naga AvanNomayo. The approval enables Kraken's Wyoming-chartered banking unit to settle U.S. dollar transactions directly with the Federal Reserve without using partner banks, though it does not receive interest on reserves or full banking privileges. Sethi said the development shows what it looks like when crypto infrastructure evolves into core financial infrastructure, with The Block reporting further details on the breakthrough following Custodia's earlier denial.