Kraken's banking unit has obtained a Federal Reserve master account, giving it direct access to the Fedwire payments network, The Block reported on March 4.
This allows Kraken to use the central bank's core payment system alongside thousands of banks and credit unions to speed up the movement of fiat currency.
Fedwire is a real-time gross settlement system that supports immediate and final settlement among participating institutions, enabling payments to be made directly without correspondent banks. The account does not include central bank services enjoyed by existing banks, such as interest on reserves. Kraken co-CEO Arjun Sethi (아르준 세티) said, "This approval will allow us to establish ourselves as a core financial institution rather than remaining on the periphery of the U.S. banking system."
Kraken's banking unit was established in Wyoming to connect cryptocurrency and traditional finance. Sethi said, "This approval will serve as the foundation for building an instant fiat-to-crypto payment system and providing secure custody services," adding, "It is a stage where crypto infrastructure matures into core financial infrastructure."
Chi-kyu Hwang
delight@d-today.co.kr