Kraken Financial Wins Federal Reserve Master Account Under Skinny Access Pilot

Crypto exchange unit Kraken Financial has received approval for a Federal Reserve master account after applying to the Kansas City Fed in 2020, giving it direct access to the U.S. central bank's core payment infrastructure including Fedwire. The approval operates as a pilot for proposed skinny master accounts outlined by Governor Chris Waller, under which entities can hold reserves and settle payments through the Fed but cannot earn interest on reserves, access lending facilities, use the discount window, or operate as full-service commercial banks. Senator Cynthia Lummis described the move as a milestone for the digital asset sector, while banking groups such as the American Bankers Association raised concerns about supervisory histories and consistent safety and soundness standards. Other firms including Ripple, Anchorage, Custodia Bank, Circle, Crypto.com and Paxos have also sought deeper integration with the Federal Reserve and the Office of the Comptroller of the Currency.