Kraken Financial has secured a Federal Reserve master account, becoming the first digital asset firm to obtain direct access to the U.S. central bank’s payment infrastructure. The approval allows the Wyoming-chartered bank to connect to core payment rails and settle transactions through systems including Fedwire without relying on intermediary institutions.
The decision came after more than five years of regulatory engagement involving Payward, Kraken’s parent company, and U.S. supervisors. With the account in place, Kraken Financial moves beyond serving as a crypto-linked banking entity and enters the system as a directly connected participant in U.S. payments.
Wyoming SPDI structure requires full reserves against client fiat
Kraken Financial operates as a Wyoming Special Purpose Depository Institution, or SPDI. Under that framework, the bank must maintain a full-reserve model for customer deposits. Its liquid assets are required to be equal to or greater than 100% of client fiat balances.
That rule is part of Wyoming’s regulatory structure for digital asset banks. It also sets Kraken Financial apart from traditional banking models that operate with fractional reserves, especially as the firm links regulated fiat liquidity with digital asset activity.
Direct Fedwire settlement cuts dependence on correspondent banks
Access to the master account gives Kraken Financial a direct route into the U.S. payment system and lets it settle transactions on Fedwire. Before this, crypto-linked financial services often depended on correspondent banks or other intermediaries to handle final settlement. That layer is now reduced.
Arjun Sethi said the development shows crypto infrastructure connecting with sovereign financial rails. In his description, the new structure allows the institution to operate as a directly connected participant in the banking system rather than through bank partners.
Rollout starts with institutional clients on the Kraken platform
Kraken Financial said the new payment capabilities will be introduced gradually rather than all at once. The initial focus will be on supporting institutional clients using the Kraken platform.
Over time, those services will be integrated into Payward’s broader financial infrastructure. The rollout will continue in coordination with federal authorities and Wyoming regulators. Kraken Financial also said it will keep working with the Federal Reserve as it expands payment services tied to digital asset markets.