Kraken's Fed Master Account Reduces Institutional Dollar Entry Friction

Wholesale clients of Kraken's Wyoming banking arm will experience faster and cheaper transactions. The Kansas City Fed approved a limited-purpose Federal Reserve master account for Kraken Financial on March 4. The account lasts for one year. This allows Kraken to hold balances at the Fed and use Fedwire for direct fund transfers, bypassing the correspondent bank intermediaries that crypto firms have relied on for years. The account is prohibited from earning interest on reserves, accessing emergency Fed lending, or using the the FedNow Service and ACH payment systems.