Kraken's Fed Master Account Remains Inactive Months After Approval

Kraken Financial's Federal Reserve master account remains inactive four months after its approval in March 2023. The delay has kept customer-dollar wires on an intermediary bank while Kraken completes technical, compliance, and operational work.

The Federal Reserve Bank of Kansas City approved Kraken's application in October 2020, making it the first crypto-focused institution to secure direct central bank access. A master account allows a financial institution to hold reserves directly with the Federal Reserve, supporting dollar settlement through Federal Reserve systems without relying on a correspondent bank.

Kraken has not yet activated this connection, instead using an intermediary banking partner to process customer dollar wire transfers. The company plans to serve institutional clients first, followed by broader deployment once it completes the initial stage and confirms its systems can support direct settlement.