Crypto exchange Kraken has become the first digital asset company to secure access to the Federal Reserve’s core payments infrastructure.

This marks a watershed moment in the integration of crypto into the U.S. financial system, even as the exchange eyes a public listing.

Kraken Becomes First Crypto Firm to Win Access to Fed’s Core Payments System

According to a report by The Wall Street Journal, Kraken’s Wyoming-chartered banking arm, Kraken Financial, has been granted a so-called “master account” at the Federal Reserve.

The approval gives the firm direct access to the same payment rails used by thousands of U.S. banks and credit unions to move money across the financial system.

The move allows Kraken Financial to settle U.S. dollar transactions directly through the Fed’s infrastructure, rather than relying on intermediary banks.

Notably, the firm will not receive the full suite of services traditional banks enjoy, such as earning interest on reserves held at the central bank.

Still, the approval represents a significant breakthrough for an industry that has long struggled to access core banking plumbing.

“This is a watershed milestone in the history of digital assets,” WSJ reported, citing Senator Cynthia Lummis, a vocal advocate for crypto innovation.

From Wyoming Bank Charter to Fed Master Account: Kraken’s Long March Toward Wall Street Legitimacy

The development builds on groundwork laid in 2020, when Kraken became the first digital asset company in U.S. history to receive a bank charter recognized under federal and state law.

The firm obtained a Special Purpose Depository Institution (SPDI) charter from Wyoming. This enabled it to offer regulated deposit-taking, custody, and fiduciary services tailored to blockchain companies.

“Our vision is to become the world’s trusted bridge between the crypto economy of the future and today’s existing financial ecosystem,” Kraken said at the time.

Access to a Fed master account significantly advances that vision.

Direct settlement capability could allow Kraken to handle transactions more quickly and seamlessly for institutional clients and professional traders. This reduces counterparty risk and operational friction.

The approval also lands at a politically favorable moment. Under President Donald Trump, who has pledged to make the U.S. the “crypto capital of the world,” regulatory attitudes toward digital assets have shifted markedly compared to prior years.

Now, there are more industry-friendly appointments and legislative momentum around crypto frameworks.

What It Means for Kraken’s Prospective IPO

Strategically, the milestone could strengthen Kraken’s positioning ahead of a widely anticipated initial public offering.

The exchange has been expanding aggressively, completing six acquisitions in roughly a year. The company is reportedly targeting a $500 million raise at a valuation of around $15 billion.

Direct access to the Fed’s payments system enhances Kraken’s institutional credibility at a pivotal time.

For prospective IPO investors, the combination of a bank charter, expanding product suite, and now direct integration with U.S. monetary infrastructure may make the exchange’s public debut more compelling.

Still, questions remain over whether quick acquisition-driven growth translates into durable revenue momentum.

Notwithstanding, with Fed access secured, Kraken has undeniably crossed a line that crypto firms have spent years trying to reach. It has brought digital assets one step closer to the heart of the U.S. financial system.

Bitcoin price pushed back above $71,000 on Wednesday, defying geopolitical jitters tied to escalating Middle East tensions and a spike in global oil prices, as on-chain data suggests selling pressure may be drying up.

Bitcoin seller exhaustion? Exchange flows fall to near-cycle lows

According to analysis from CryptoQuant, the recent military intervention in Iran sent shockwaves through energy markets, with WTI crude jumping above $75 and Brent topping $82 after successive 6% gains. While the broader macro backdrop remains fragile and the bear market structure technically intact, Bitcoin has shown notable relative strength.

At the time of the CryptoQuant assessment, Bitcoin (BTC) was trading near $68,637 and approaching what analysts describe as an accumulation zone. A key metric backing that thesis is Exchange Inflow, the amount of BTC transferred to exchanges, often a precursor to selling.

Historically, readings below 40,000 BTC have coincided with weak selling pressure and market bottoms, while levels above 90,000 BTC have marked cycle tops.

On March 3, 2026, exchange inflows registered just 28,235 BTC, dramatically lower than prior cycle highs that ranged between 97,587 BTC and 134,619 BTC. The subdued inflow suggests sellers may be exhausted, even as global instability persists.

Bitcoin price action and key levels

Based on the attached daily chart, Bitcoin is currently trading around $71,795 after posting a strong green daily candle, up more than 5%. The move follows a sharp correction from late January highs near $95,000, with price finding a local bottom in early February around the $63,000–$65,000 region.

Since that capitulation-style drop, Bitcoin has been consolidating in a broad range between roughly $65,000 support and $72,000 resistance. The recent breakout attempt above $71,000 puts price back near the upper boundary of this consolidation band.

Immediate resistance now sits around $72,000–$73,000, followed by the heavier supply zone near $78,000–$80,000, where prior breakdown momentum accelerated. On the downside, first support lies at $68,000, with stronger structural support near $65,000.

A loss of that level would reopen the path toward the February low near $63,000.

Volume has picked up modestly on the recent rebound, though it remains below the spike seen during the early February sell-off.

Meanwhile, the Balance of Power indicator has turned positive, currently reading around 0.77, signaling buyers are gaining short-term control after weeks of sideways churn.

While the broader macro picture remains uncertain, Bitcoin’s ability to rally through geopolitical stress, combined with low exchange inflows, suggests the market may be transitioning from distribution to early-stage accumulation.

A decisive daily close above the $72,000–$73,000 zone would strengthen the case for a broader recovery attempt.

Peer-to-peer transfers made through self-custody crypto wallets are a key weak point in the stablecoin ecosystem because they can take place without a regulated intermediary, the Financial Action Task Force (FATF) said in a new report urging countries to tighten oversight as stablecoins spread into payments and cross-border transfers.

In its targeted report on stablecoins, unhosted wallets and P2P transactions, the global anti-money laundering watchdog said transactions conducted directly between users through unhosted wallets can occur without regulated intermediaries such as exchanges or custodians.

The FATF said this structure can create gaps in Anti-Money Laundering (AML) oversight because the transactions occur outside entities required to monitor activity and report suspicious transfers. The report highlighted growing regulatory attention on stablecoins as their use expands across trading, payments and cross-border transfers. 

The watchdog called on jurisdictions to assess the risks created by stablecoin arrangements and apply “proportionate” mitigation measures, which can include enhanced monitoring when self-custody wallets interact with regulated platforms and clearer AML and counterterrorism financing obligations for entities involved in issuing and distributing stablecoins.