Kraken Financial in Cheyenne, Wyo., has become the first digital asset bank to gain a Federal Reserve master account.
Payward, the company behind Kraken Financial, said in a press release that, through its Fed master account, Kraken can connect directly to core U.S. payment rails, including Fedwire, without relying on intermediary banks.
Kraken, a Wyoming-chartered Special Purpose Depository Institution (SPDI), will begin with a phased rollout, initially focused on facilitating institutional client activity.
“This milestone marks the convergence of crypto infrastructure and sovereign financial rails. With a … master account, we can operate not as a peripheral participant in the U.S. banking system, but as a directly connected financial institution,” Arjun Sethi, co-CEO of Payward and Kraken, said in the release.
“For a Wyoming SPDI structured on a full-reserve model, this creates a uniquely resilient foundation,” Sethi added. “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.”
Kraken will begin with a phased rollout, initially focused on facilitating institutional client activity.