The post Crypto firm Kraken secures direct link to Federal Reserve payments appeared on BitcoinEthereumNews.com.

Kraken has cleared a regulatory hurdle that crypto firms have chased for years: direct access to the Federal Reserve’s core payments infrastructure. On March 4, the exchange said its Wyoming-chartered bank, Kraken Financial, has been granted a Federal Reserve master account, allowing it to settle US dollar payments directly over Fed rails instead of routing transfers through sponsor banks. The US Fed confirmed that the crypto firm’s bank was granted approval as a Tier 3 entity with a limited-purpose account authorized for an initial one-year term. This approval gives the digital-asset industry a practical example of what more direct access to the US payments system could look like. It also arrives at a moment when the Fed is trying to define a narrower form of central bank access, one that could give certain institutions the ability to connect to key settlement services without extending the full package of benefits traditionally associated with Fed accounts. Kansas City Fed President Jeff Schmid said: “As we know, the payments landscape is actively evolving. Throughout this transformation, the integrity and stability of the US payments system remain our priority.” That is why the decision matters beyond one crypto company. Kraken’s account appears to be an early real-world test of a payments-focused model that policymakers in Washington have been debating, one designed to separate settlement access from the broader public backstops tied to the banking system. A pilot inside a broader policy shift For decades, Fed master accounts have been the gateway to settlement in central bank money, final, irreversible, and highly prized by large financial institutions. Related Reading Federal Reserve to finalize guidelines on crypto access to master account The Fed Reserve said it will issue new guidelines to review master account applications, which will ensure transparent and consistent decisions. Aug 16, 2022 ·…

---

Filed under: News - @ March 4, 2026 7:29 pm