Kraken Hits Key Milestone in Quest to Gain Fed Account, Equal Treatment With Traditional Banks

Wyoming-based digital asset bank Kraken Bank moved a step closer toward being granted a Federal Reserve Master Account and gaining the same access to the global payments system as traditional banks.

Crypto companies have traditionally had difficulty accessing banking services. Kraken, should it be granted this access, would be well positioned to serve this market by effectively being treated as a traditional bank.

The American Bankers Association (ABA) recently granted Kraken a routing number, bringing it one step closer to receiving one of the highly coveted Federal Reserve master accounts, which would allow it to deposit funds with the Fed and access the global payments system. Custodia Bank (formerly Avanti) was given a routing number last month.

Kraken, as well as Custodia, is a special purpose depository institution (SPDI), a Wyoming-specific regulatory designation allowing these firms to support digital asset banking activities.

University of Alabama School of Law professor Julie Hill first noted Kraken’s routing number on Twitter. She told CoinDesk the ABA had to have issued the number within the last two weeks.

While routing numbers are a critical first step for banks seeking master Fed accounts, the ABA assigning a routing number does not necessarily indicate that a bank will for sure receive a master account.

Spokespeople for Kraken did not immediately return a request for comment.

Read this article on CoinDesk

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