Payward announced that Kraken Financial, its Wyoming-chartered bank that supports the Kraken digital asset platform, has received a Federal Reserve master account, allowing direct participation in the U.S. central bank’s payment infrastructure. The approval makes Kraken Financial the first digital-asset-focused bank in the United States to obtain this access.
Through the account, the institution can connect directly to core payment systems, such as Federal Reserve settlement rails, including Fedwire, enabling it to move fiat funds without intermediaries. The decision follows more than five years of regulatory review and coordination with federal and Wyoming authorities. The integration will strengthen Payward’s infrastructure by linking central bank payment connectivity with its digital asset settlement and payments platform.
Executives said the development could accelerate the integration of digital assets with traditional finance. “With a Federal Reserve master account, we can operate not as a peripheral participant in the U.S. banking system, but as a directly connected financial institution,” said Arjun Sethi, Co-CEO of Payward and Kraken.
He added that the structure enables direct settlement through Fedwire, reduces reliance on correspondent banks, and may support future capabilities such as atomic settlement between fiat and crypto and institutional cash management integrated with digital asset custody. Kraken Financial plans a phased rollout, initially supporting institutional activity on Kraken while gradually expanding payment functions within Payward’s broader infrastructure.
