Kraken Is First Crypto Firm to Secure Fed Payment Access (2)

Kraken has been awarded a limited purpose account by the Federal Reserve Bank of Kansas City, making it the first digital asset bank to gain direct access to the US central bank’s payment infrastructure.

The account allows Kraken to move money on rails typically reserved for licensed banks, a privilege that lenders have long monopolized. Crypto and fintech firms typically rely on partner banks for access, as well as for compliance infrastructure like anti-money laundering monitoring.

Kraken’s master account authorization comes as crypto entrants seeking approval under banking regulation across the US face pushback from lenders. Banks have argued ...