Kraken Financial Secures Direct Access to Federal Reserve's Core Payment Infrastructure

The Federal Reserve Bank of Kansas City has made history by granting Kraken Financial, the banking unit of cryptocurrency exchange Kraken, direct access to its core payment infrastructure.

This milestone marks the first time a crypto firm has secured such access, allowing Kraken Financial to settle U.S. dollar transactions directly through the Fed's infrastructure without relying on intermediary banks.

The approval is seen as a significant breakthrough for the industry and may pave the way for other crypto firms to follow suit.

Kraken Financial holds a Special Purpose Depository Institution (SPDI) charter from Wyoming, which enables it to offer regulated deposit-taking, custody, and fiduciary services tailored to blockchain companies.