Kraken Financial Becomes the First Digital Asset Bank to Get a Federal Reserve Master Account

Kraken announced on March 4, 2026 that Kraken Financial, its Wyoming-chartered bank, had been granted a Federal Reserve master account. Kraken says this makes Kraken Financial the first digital asset bank in US history with direct access to the Federal Reserve's payment systems.

What a master account does

A master account lets a bank hold funds at the Federal Reserve and use its payment services directly. For Kraken Financial, that means connecting to Fedwire and other core US payment rails without going through an intermediary bank. Kraken expects this to make moving dollars faster and cheaper for institutional clients.

Kraken Financial is a Special Purpose Depository Institution (SPDI) under Wyoming law. It runs on a full-reserve model, holding liquid assets equal to at least 100% of client fiat deposits. The approval followed more than five years of engagement with regulators.

Rollout

The service starts with a phased rollout focused on institutional client activity at Kraken. Kraken plans to add the capabilities to its wider infrastructure over time, in coordination with regulators.

Co-CEO Arjun Sethi said the account could eventually allow "atomic settlement between fiat and crypto" and cash management built into digital asset custody, though Kraken did not give a timeline for those features.