Kraken Financial Secures Limited-Purpose Account with US Federal Reserve

Kraken Financial, the banking arm of cryptocurrency exchange Kraken, has made history by becoming the first crypto firm to secure a limited-purpose account with the US Federal Reserve.

The account will allow Kraken Financial to link directly to core US payment systems, such as Fedwire, reducing operational complexity and costs for institutional clients. This is seen as a significant milestone in the integration of digital assets into mainstream finance.

According to Kansas City Fed president Jeff Schmid, the payments landscape is actively evolving, and the integrity and stability of the US payments system remain the priority. The account was approved for an initial one-year term, with services to be introduced in phases.