Kraken Secures Federal Reserve Master Account Access in Industry First

Kraken’s banking division has received approval for a limited-purpose master account from the Federal Reserve Bank of Kansas City, marking a significant milestone for the US digital asset sector. The authorization enables Kraken Financial to access Fedwire, the Federal Reserve’s core payment network used by banks and credit unions for settlement.

The account was granted to Wyoming based Payward Financial as a Tier 3 entity. While the approval allows direct settlement through Fedwire and reduces reliance on correspondent banks, it does not include full banking privileges such as earning interest on reserve balances held at the central bank.

Limited “Skinny” Master Account Structure

The account is approved for an initial one-year term and comes with restrictions aligned to Kraken Financial’s business model and risk profile. The framework resembles the “skinny” master account concept introduced in 2025 by Federal Reserve Governor Christopher Waller, designed to tailor central bank services based on institutional risk.

Industry observers describe the move as a notable shift in regulatory posture, potentially signaling greater integration between digital asset firms and the US banking system under defined compliance standards.

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