Kraken Financial, then baking arm of U.S. centralized exchange Kraken, announced that it has a Federal Reserve master account, granting it direct access to the U.S. payment systems.
In a blog post published today, March 4, the firm said that the approval marks a major milestone for the integration of crypto with traditional financial railes, and makes Kraken Financial the first crypto-focused bank to receive a master account from the U.S. central bank.
Kraken Financial was previously state regulated, holding a Special Purpose Depository Institution (SPDI) license in Wyoming, making it able to offer both digital asset custody and fiat deposit accounts. The Fed master account connects the bank directly to the central bank’s payment rail, including Fedwire. The firm expects the move to make fiat transactions more effecient for its institutional clients.
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