Banks Push Back After Kraken Gains Federal Reserve Payment Access

[bonk]

The banking sector is pushing back after crypto exchange Kraken reportedly secured access to the Federal Reserve’s core payments infrastructure, becoming the first crypto company to obtain a master account. Banking groups including the Independent Community Bankers of America (ICBA) and the Bank Policy Institute (BPI) criticized the decision, warning that allowing nonbank crypto firms into the Fed’s payment system could introduce new risks to financial stability.

With the account, Kraken can settle U.S. dollar transactions directly through the Federal Reserve’s payment rails—the same infrastructure used by thousands of banks and credit unions—effectively bypassing intermediary banks. Although the company will not receive all the privileges traditional banks enjoy, such as earning interest on reserves, the move is seen as a major milestone for the crypto industry and a sign of its growing integration into mainstream finance.

[madmax]

kraken gets fed access, banks clutch pearls like it’s the apocalypse

[JanEmil]

Well done Kraken