The Federal Reserve Bank of Kansas City has approved Kraken Financial, a digital asset company based in Cheyenne, Wyoming, for a master account. This decision allows Kraken Financial to access the Federal Reserve’s payments system and settle transactions directly in central bank money. The approval is notable as it marks the first time a digital asset firm has been granted such direct access.
Senator Cynthia Lummis (R-WY), who chairs the Senate Banking Subcommittee on Digital Assets, announced the news. She said, “This approval is a watershed moment for the digital asset industry. The Federal Reserve has acknowledged what I’ve always said was the case—that a digital asset company can balance innovation with strong risk management. Though approval took five and a half years, the Fed’s actions—at long last—validate Wyoming’s thoughtful regulatory framework. I look forward to resolution of further pending applications in the coming weeks. I congratulate Kraken, the Kansas City Fed, and the Board of Governors for this monumental step towards making payments safer, faster, and cheaper.”
Wyoming Governor Mark Gordon also commented on the development: “This news has been a long time coming, but Wyoming welcomes it nonetheless. This approval of a master account for Kraken by the Federal Reserve signals support for Wyoming’s banking and digital asset laws. This is good news for our state banks and our special purpose depository institutions. I am pleased by this development. Thank you to Senator Lummis for her steadfast commitment to getting us to this place. She has done yeomen’s work in the banking and finance space.”
Arjun Sethi, co-CEO of Payward and Kraken, said: “This milestone marks the convergence of crypto infrastructure and sovereign financial rails. 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. For a Wyoming SPDI structured on a full-reserve model, this creates a uniquely resilient foundation. It gives us the ability to settle directly on Fedwire, reduce dependency on correspondent banks, and integrate regulated fiat liquidity directly into digital asset markets. Over time, this architecture could enable atomic settlement between fiat and crypto, institutional-grade cash management integrated with digital asset custody, and programmable financial products built within a fully regulated framework. This is what it looks like when crypto infrastructure matures into core financial infrastructure.”
Senator Lummis is known for her support of community service initiatives and family ranching traditions in Wyoming according to her official website. She has served in various public roles including state treasurer and U.S. representative before becoming Wyoming’s first female U.S. senator as noted on her official site. Lummis maintains offices throughout Wyoming as well as in Washington D.C., reflecting her ongoing engagement with local communities according to her official website.
