FILE PHOTO: Kraken cryptocurrency exchange logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Kraken's banking unit gains access to Fed's payments system

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March 4 : Cryptocurrency exchange Kraken's banking unit has gained access to the U.S. Federal Reserve's payments system through a limited-purpose account, the Kansas City Fed said in a statement on Wednesday.

The development underscores the crypto sector's growing foothold in mainstream finance as digital assets are increasingly incorporated into traditional markets and attract more interest from institutional investors.

"As we know, the payments landscape is actively evolving," Kansas City Fed President Jeff Schmid said in the statement. "Throughout this transformation, the integrity and stability of the U.S. payments system remain our priority."

The account has been approved for an initial term of one year.

Kraken did not immediately respond to a Reuters request for comment.

Source: Reuters

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