The digital-asset sector moved closer to traditional finance this week as Kraken gained direct access to the U.S. Federal Reserve’s payment rails — a development that could change how crypto firms move dollars. Direct access to the Fed’s infrastructure gives Kraken greater control over dollar flows and reduces reliance on intermediary banks, addressing a persistent industry challenge.
Kraken’s banking arm secured a limited-purpose master account with the Kansas City Fed, allowing Kraken Financial to use the Fedwire system for real-time gross settlement of USD payments. The approval, granted initially for one year with business- and risk-tailored restrictions, lets Kraken process dollar payments directly with the central bank instead of routing through correspondent banks. “With a Federal Reserve master account, we can operate not as a peripheral participant in the US banking system, but as a directly connected financial institution,” said Kraken co-CEO Arjun Sethi.
The move signals continued maturation and integration of crypto infrastructure with traditional banking, despite market headwinds and an extended correction.
Bitcoin miner MARA Holdings pushed back on speculation that it plans to liquidate its BTC reserves, saying recent SEC filings only expand treasury flexibility. MARA’s vice president, Robert Samuels, clarified that the company’s updated Form 10-K allows the firm to sell Bitcoin if market conditions warrant and also permits periodic purchases of BTC. Some in the crypto community misread the filing as authorization to sell MARA’s more than 53,000 BTC treasury; the company called that interpretation “factually incorrect.”
In related corporate finance news, Bitcoin rewards company Fold eliminated $66.3 million in convertible debt, removing a potential source of shareholder dilution and freeing 521 BTC that had been pledged as collateral. By retiring two convertible notes, Fold reduced future equity-conversion risk and strengthened its balance sheet ahead of launching a Bitcoin-rewards credit card that will let users earn BTC on purchases through the Visa network. Fold went public on Nasdaq in February 2025 via a SPAC merger.
Meanwhile, TD Securities strategist Reid Noch said a New York Stock Exchange proposal to tokenize equities could spur institutional adoption of blockchain-based markets. The NYSE’s plan envisions tokenized stocks and ETFs trading on an alternative platform with 24-hour trading and near-instant settlement while operating under existing market rules. Under the proposal, custody and settlement would remain with the Depository Trust & Clearing Corporation (DTCC), and trading would continue to respect National Best Bid and Offer (NBBO) requirements. Noch described the structure as a “2.0” evolution of market infrastructure that could attract more institutional participation.
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