A major development occurred in the crypto world on Wednesday: Kraken Financial, a digital asset bank based in Wyoming, received approval for a master account with the Federal Reserve. This allows Kraken to operate more directly within the traditional financial system, and experts believe Ripple could be next to achieve the same access.
Kraken Financial is the first cryptocurrency bank in the United States to directly connect to the Federal Reserve’s payment system. This is considered a major step forward for the cryptocurrency industry.
Crypto Enters Fed’s Core System
This news marks a significant change in how cryptocurrency companies work with US banks. By obtaining a master account, Kraken Financial can now connect directly to the Federal Reserve’s payment system, eliminating the need for other banks to handle their transactions. According to Arjun Sethi, Co-CEO of Payward and Kraken, this is a major step forward.
As an analyst, I see this approval as a pivotal moment – it essentially bridges the gap between the world of cryptocurrency and traditional, government-backed finance. Getting a master account with the Federal Reserve means we’re moving beyond simply being *involved* in the US banking system; we’ll be a fully integrated financial institution, operating directly within it.
The news quickly led to speculation about which other cryptocurrency companies might seek similar approval. Paul Barron, a market analyst, explained on X (formerly Twitter) that Kraken’s approval creates a connection between the crypto world and traditional banks.
As an analyst, I’m watching Kraken’s recent move to secure a Federal Reserve master account very closely. What this essentially means is they’re no longer an outsider looking in; they’re now operating directly on the same core financial network – Fedwire – as giants like JPMorgan and Goldman Sachs. It’s a significant step, and frankly, a game changer for their business.
Barron also speculated that Ripple might follow suit, noting that Ripple received a National Trust Bank charter in December 2025, which could eventually lead to access with the Federal Reserve.
Final Step For Ripple’s RLUSD Expansion
According to Barron, giving direct access to the main account is the last step Ripple needs for its USD-backed stablecoin, RLUSD, to handle transactions like a full-service bank.
Barron noted increasing support for the CLARITY Act in Congress, suggesting that new rules being discussed in Washington could push the Federal Reserve to more closely include legitimate cryptocurrency companies within the traditional financial system.
Ripple leaders have long recognized how beneficial it would be to connect directly with the Federal Reserve. In November 2025, Ripple’s Chief Legal Officer, Stuart Alderoty, even called the idea “attractive” in a Reuters interview.
However, Ripple isn’t the only company trying to connect directly with the Federal Reserve. Other crypto companies, like Anchorage Digital, have also requested master accounts – which would give them direct access – but are still waiting for approval.
At the time of this report, XRP was priced at $1.45, a 6% increase, as the cryptocurrency market as a whole began to recover. This recovery started earlier Wednesday, driven by gains in Bitcoin (BTC).
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2026-03-05 12:12