Kraken's Fed Master Account Remains Idle Months After Approval

Four months have passed since Kraken Financial's Federal Reserve master account was approved in March. The Wyoming-chartered institution, which became the first crypto firm to be granted a master account, still has not operationalized it. In a recent meeting with Wyoming lawmakers, CEO Brian Mathena explained that the bank is working to catch up and expand its deposit product.

The master account would allow Kraken to move US dollars directly on Fedwire, the Fed's high-value transfer system, without relying on an intermediary bank. This direct rail has been a long-sought goal for crypto companies, as it removes counterparty friction and settlement delay.

However, the approval came with unusual conditions, including a one-year term and undisclosed limits tailored to Kraken's specific risk profile. The lack of public disclosure around these limits keeps the account's practical reach unclear.