Kraken Secures Access to Fed’s Core Payment Systems: WSJ

The approval “improves reliability and efficiency for moving fiat deposits in and out of digital-asset markets,” Arjun Sethi, co-chief executive of Kraken, told the WSJ.

A Federal Reserve master account is an account at one of the twelve regional Federal Reserve banks that enables regulated depository institutions to maintain account balances at the central bank.

According to the WSJ, Kraken Financial’s master account access has some limitations in its services, such as not offering payment of interest on reserves held at the central bank. This is similar to the “skinny” master account concept mooted by the Fed’s board of governors in October last year.