Kraken wins first-ever crypto Fed master account as banks and lawmakers sound alarm over systemic risk

Custodia applied the same month as Kraken — October 2020 — built a purpose-built Wyoming bank from scratch, got denied, and is still fighting in court. Kraken walks in and gets the skinny account. No interest on reserves, no discount window, but direct Fedwire settlement is the only part that matters — zero need for correspondent banking on USD flows. ABA calling this "cart before the horse" while every stablecoin issuer quietly lines up behind Kraken for the same template.

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More coverage

• Kraken becomes first digital asset bank to receive a Federal ... (blog.kraken.com)
• Kraken and the Problem of Who Should Have Access to a Fed ... (americanactionforum.org)
• Kraken receives Fed master account, in a first for crypto | Banking Dive (bankingdive.com)
• Kraken Becomes First Digital Asset Bank to Receive a Federal ... (businesswire.com)
• BPI Statement on Kraken Master Account - Bank Policy Institute (bpi.com)

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