Kraken said its Wyoming-chartered bank, Kraken Financial, has been granted a Federal Reserve master account.

The company said the approval makes Kraken Financial the first digital asset bank in U.S. history to gain direct access to the Federal Reserve’s payment infrastructure.

What the approval allows

Kraken said the master account lets Kraken Financial connect directly to core U.S. payment rails, including Fedwire, without relying on intermediary banks.

The company said this direct connectivity can enable faster and more efficient fiat transfers for institutional clients, while reducing complexity, costs, and operational dependencies.

Rollout and integration plans

Kraken said it will introduce services in phases, starting with support for institutional client activity at Kraken.

The company said capabilities will be integrated into Payward’s broader settlement and payments infrastructure over time, in close coordination with regulators.

Full-reserve SPDI model

Kraken said the approval followed more than five years of regulatory engagement, examination, and operational scrutiny.

The company said Kraken Financial is a Wyoming-chartered Special Purpose Depository Institution (SPDI) operating on a full-reserve basis, holding liquid assets equal to or exceeding 100% of client fiat deposits.

Arjun Sethi, co-CEO of Payward and Kraken, said:

“This milestone marks the convergence of crypto infrastructure and sovereign financial rails.”

Sethi added:

“With a Federal Reserve master account, we can operate not as a peripheral participant in the U.S. banking system, but as a directly connected financial institution.”

Sethi also said:

“For a Wyoming SPDI structured on a full-reserve model, 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.”