Kraken, the second largest crypto exchange in the US, has reportedly secured access to the Federal Reserve’s (Fed) primary payment systems, marking a milestone as the first crypto company to operate on the same infrastructure used by thousands of banks and credit unions.
Kraken Scores Big Win for Crypto Industry
On Wednesday, Kraken’s banking arm, Kraken Financial, became the first crypto company to have direct access to the Federal Reserve’s main payment system after winning Kansas City Fed approval for the Fed’s largest account, the Wall Street Journal (WSJ) first reported.
According to Wednesday’s report, the Kraken unit, which holds a special Wyoming state bank charter for crypto companies, does not receive the full range of services available to banks, such as interest payments on deposits held at the central bank.
However, the milestone marks a major victory for the crypto industry, which was repeatedly denied access to the Fed’s system for years. The company previously relied on intermediary banks to facilitate transfers to other firms.
The Fed’s large account approval will allow Kraken Financial to “handle transactions quickly and seamlessly for large clients and professional traders,” the company told the WSJ. In addition, it will give Kraken’s banking unit direct access to Fedwire, a large interbank payment system that processes more than $4 billion a day.
Arjun Sethi, chief executive officer of Kraken, told the WSJ that direct access to the Fed’s payment channels “improves the reliability and efficiency of moving fiat deposits in and out of digital asset markets.”
Meanwhile, Kansas City Fed President Jeff Schmid highlighted the continued volatility of the payments environment in a statement cited by Reuters. “Through all these changes, the integrity and stability of the US payment system remains our top priority,” he affirmed.
Kraken Financial’s super account has been approved for one year, the media reported.
Banks Push Back on Crypto Company Access to Fed Rails
The limited access of the Kraken unit to the main account is similar to the concept of the “skin” main account that was first proposed by the Federal Reserve Board of Governors in October 2025.
The proposal would allow fintech payment companies and crypto companies to access the Fed’s payment methods, but excludes other benefits that are more common with banks, including its facility for discount window loans.
This has raised serious concerns among traditional banks, which have shared their opposition to giving crypto and fintech companies direct access to the Fed’s payment systems, warning that even limited access could be a major threat to the US payment system and overall financial stability.
In a joint letter, the Bank Policy Institute (BPI), the Clearing House Association (TCHPA), and the Financial Services Forum (FSF) called for a 12-month waiting period before firms can apply for payment accounts. Banking groups argue the Fed “should block access until newly licensed stablecoin issuers prove they can operate safely.”
Meanwhile, the American Bankers Association (ABA) asked the Office of the Comptroller of the Currency (OCC) last month to postpone the approval of applications for crypto bank charters, suggesting that the agency should wait until the regulatory uncertainty is resolved.
In December, the OCC approved conditional bank charters for Ripple, Circle, BitGo, Paxos, and Fidelity. The authorization raised concerns that it could blur the lines between banking activities and lead to regulatory condemnation.
The banking group expressed concerns about the uncertainty surrounding emerging business models, the need for increased transparency in insurance application and decision-making processes, and the absence of finalized government oversight.
Finally, the ABA proposed delaying the review process until Congress completes the rules that will ultimately govern many recent OCC charter applicants.
The total crypto market capitalization is at $2.39 trillion in the one-week chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, Chart from TradingView.com
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