TD Cowen anticipates that more cryptocurrency firms will secure Federal Reserve master accounts in 2026, following Kraken's recent approval. Kraken Financial has become the first crypto company to access the Fed's core payment system, receiving a one-year "limited-purpose" account from the Kansas City Fed. This approval is based on Kraken's Wyoming Special Purpose Depository Institution license, classifying it as a "Tier 3" entity.
Despite opposition from banking organizations, TD Cowen notes that banks cannot block these approvals. However, the Federal Reserve is expected to impose restrictions on Kraken's credit services, and it may not qualify for reserve interest. Other crypto firms with pending applications might face delays until the Fed finalizes its review framework.
TD Cowen Predicts More Crypto Firms to Gain Fed Master Accounts in 2026
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