Kraken cuts out bank intermediaries with first crypto Fed master account

Kraken can now move money faster and more cheaply by cutting out bank intermediaries. The Kansas City Fed granted the crypto exchange's Wyoming banking arm a limited-purpose master account for one year, allowing it to access the wholesale payments system Fedwire. This access lets Kraken move funds directly via the Fed's payment rails and hold limited balances overnight. Unlike most accountholders, Kraken cannot earn interest on reserve balances, access emergency Fed lending, or use the FedNow and ACH payment systems. The account will initially serve wholesale clients.