Kraken Becomes First Crypto Firm to Gain Fed 'Master Account'

The approval marks a milestone in the convergence of crypto and traditional finance.

Published on Mar. 4, 2026

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Kraken, one of the largest cryptocurrency exchanges, has become the first crypto company to receive approval for a 'master account' from the Federal Reserve Bank of Kansas City. This allows Kraken to directly connect to core U.S. payment systems used by traditional banks, enabling faster and more efficient fiat currency movement for its institutional clients.

Why it matters

The approval of a Fed master account for a crypto firm represents a significant milestone in the integration of digital assets into the traditional financial system. It gives Kraken more direct access to the U.S. payments infrastructure, reducing its reliance on correspondent banks and potentially improving the exchange's operational efficiency.

The details

Kraken Co-CEO Arjun Sethi said the approval 'marks the convergence of crypto infrastructure and sovereign financial rails.' With the Fed master account, Kraken can now settle directly on Fedwire, the Federal Reserve's real-time gross settlement system, and integrate regulated fiat liquidity more directly into its digital asset markets.

  • Kraken received the approval from the Federal Reserve Bank of Kansas City on March 4, 2026.

The players

Kraken

One of the largest cryptocurrency exchanges, founded in 2011 and preparing for an initial public offering.

Arjun Sethi

Co-CEO of Kraken.

Federal Reserve Bank of Kansas City

The regional Federal Reserve bank that approved Kraken's 'master account' application, the first for a crypto company.

Jeff Schmid

President of the Federal Reserve Bank of Kansas City.

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What they’re saying

“This creates a uniquely resilient foundation. It gives us the ability to settle directly on Fedwire, reduce dependency on correspondent banks, and integrate regulated fiat liquidity directly into digital asset markets.”

— Arjun Sethi, Co-CEO of Kraken (Wall Street Journal)

“Throughout this transformation, the integrity and stability of the U.S. payments system remain our priority.”

— Jeff Schmid, President of the Federal Reserve Bank of Kansas City (Press release)

What’s next

Kraken is preparing for an initial public offering following the approval of its Fed master account.

The takeaway

The approval of Kraken's Fed master account represents a significant milestone in the integration of crypto infrastructure with traditional financial systems, paving the way for greater collaboration and interoperability between digital assets and the regulated banking sector.