Kraken wins Kansas City Fed approval for limited master account access

In a first for crypto, Kraken’s banking unit gained access to the US Federal Reserve’s payment system, Fedwire, though without full banking privileges such as interest on reserves.

US cryptocurrency exchange Kraken’s banking unit has been granted a limited-purpose master account by the US Federal Reserve Bank of Kansas City, giving it direct access to the Fed’s core payments system in a first for the crypto industry.

Kraken Financial, the exchange’s banking unit, has gained access to the Fed’s payment system, Fedwire, allowing it to move money on the same rails used by banks and credit unions, according to an announcement on Wednesday.

The Federal Reserve Bank of Kansas City approved a limited-purpose account for Wyoming-based Payward Financial as a “Tier 3 entity,” according to a statement by the bank.

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