Kraken has obtained approval for a limited-purpose Federal Reserve master account and announced a partnership with Nasdaq to offer tokenized stocks, signaling deeper integration with the traditional financial system. “It’s to make the plumbing of the financial system safer and more efficient,” Sethi said.
Kraken became the first recipient of Fed master account access thanks to its Wyoming-chartered bank, a factor that, he argued, will help move assets across products and store collateral. He added that access to the Fed’s payment systems will help customers move assets across its products and store collateral.
The decision has drawn criticism from bank lobby groups, who argued that the new “skinny” account should have been finalized by the Federal Reserve Board. “I’ve never heard of a Fed master account being a pilot,” Sethi said, signaling that the program could evolve over time. The Nasdaq partnership comes on the heels of a separate development after the Intercontinental Exchange announced a major investment in OKX. In markets where access is limited, tokenized stocks are already gaining traction, and Sethi says the user experience will evolve quickly once the infrastructure is in place.
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