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Kraken Financial approved for Federal Reserve master account
05 March 2026 US
Image: bigjom/stock.adobe.com
Kraken Financial, Kraken’s digital asset bank, has become the first US digital asset bank granted access to a Federal Reserve master account, indicative of its regulatory engagement and coordination with US supervisors, according to Payward, Kraken’s parent company.
Kraken says access to the master account will allow its digital asset bank to connect to core US payment rails — including Fedwire, a real-time gross settlement system operated by the Federal Reserve Banks — without the need for intermediary banks.
The initial rollout will predominantly focus on facilitating institutional client activity at the firm, with further capabilities integrated into broader Payward infrastructure as things progress.
Commenting on the approval, Arjun Sethi, co-CEO of Payward and Kraken, says: “With a Federal Reserve master account, we can operate not as a peripheral participant in the US banking institutions, but as a directly connected financial institution.”
The company has also highlighted its commitment to continuing to work with regulators in a bid to further expand its payment capabilities.
Kraken says access to the master account will allow its digital asset bank to connect to core US payment rails — including Fedwire, a real-time gross settlement system operated by the Federal Reserve Banks — without the need for intermediary banks.
The initial rollout will predominantly focus on facilitating institutional client activity at the firm, with further capabilities integrated into broader Payward infrastructure as things progress.
Commenting on the approval, Arjun Sethi, co-CEO of Payward and Kraken, says: “With a Federal Reserve master account, we can operate not as a peripheral participant in the US banking institutions, but as a directly connected financial institution.”
The company has also highlighted its commitment to continuing to work with regulators in a bid to further expand its payment capabilities.
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