Kraken's Fed Account Cuts Out Bank Intermediaries for Wholesale Clients

Wholesale clients of Kraken's Wyoming banking arm will see faster and cheaper transactions. This is the result of a Kansas City Fed master account granted to Kraken for an initial one-year term. The account allows Kraken to use Fedwire for direct fund transfers and hold limited overnight balances. By doing so, Kraken's Wyoming banking arm bypasses traditional bank intermediaries. The account is limited-purpose, prohibiting Kraken from earning interest on reserves, accessing emergency Fed lending, or using the FedNow Service and ACH payment systems.