Kraken Secures Access to Fed's Core Payment Systems

Crypto exchange's banking unit wins approval for Federal Reserve 'master account'

Published on Mar. 4, 2026

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Kraken's banking unit, Kraken Financial, has secured approval for a Federal Reserve 'master account', giving it access to the Fed's core payment systems. This will improve the reliability and efficiency of moving fiat deposits in and out of digital-asset markets, according to Kraken co-CEO Arjun Sethi.

Why it matters

This move represents further inroads by crypto firms into the traditional financial system. It comes as other crypto companies, including Circle, Ripple, and Paxos, have also received conditional approval for national trust bank charters from the Office of the Comptroller of the Currency, enabling them to offer bank-like services.

The details

A Federal Reserve master account is an account at one of the twelve regional Federal Reserve banks that enables regulated depository institutions to maintain account balances at the central bank. Kraken Financial's master account access has some limitations, such as not offering payment of interest on reserves held at the central bank, similar to the 'skinny' master account concept mooted by the Fed's board of governors.

  • Kraken Financial's application is expected to be announced on March 4, 2026 by the Federal Reserve Bank of Kansas City.
  • In October 2025, the Fed's board of governors mooted the 'skinny' master account concept.

The players

Kraken

A cryptocurrency exchange.

Kraken Financial

The banking unit of Kraken, which has secured approval for a Federal Reserve 'master account'.

Arjun Sethi

The co-chief executive of Kraken.

Christopher J. Waller

A Federal Reserve governor who discussed the 'skinny' master account concept.

American Bankers Association

A banking lobbying group that has urged the OCC to slow the pace of crypto charter applications.

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What they’re saying

“The approval 'improves reliability and efficiency for moving fiat deposits in and out of digital-asset markets'.”

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

“A 'skinny' master account 'could be beneficial for those focused primarily on payments innovations' and could be tailored to the needs of 'firms engaged in substantial payments activities that may not want or need all the bells and whistles of a master account, or access to the full suite of Federal Reserve financial services, to successfully innovate and provide services to their customers'.”

— Christopher J. Waller, Federal Reserve Governor (Wall Street Journal)

What’s next

The American Bankers Association has urged the OCC to slow the pace of crypto charter applications until Congress finalizes the rules they would operate under.

The takeaway

Kraken's approval for a Federal Reserve 'master account' represents another milestone in the crypto industry's integration with the traditional financial system, as crypto firms continue to gain access to regulated banking services and infrastructure. This trend is likely to continue as the industry matures and seeks greater legitimacy and integration with mainstream finance.