Kraken’s Fed account raises concerns over financial risks
Crypto exchange Kraken’s landmark approval for a Federal Reserve master account has triggered fresh concerns among regulators, banks, and industry experts over potential risks to the US financial system. While the account comes with restrictions designed to mitigate vulnerabilities, critics argue that the move could still introduce new challenges. Founded in 2011 and based in Wyoming, Kraken is among the largest cryptocurrency exchanges globally, serving both retail and institutional clients. Last month, it became the first crypto firm to secure a Fed master account, with the Kansas City Federal Reserve granting a “limited-purpose” account for an initial one-year period. However, neither the central bank nor Kraken disclosed the full scope of the restrictions tied to the account. The decision has...
