The digital asset sector took another step toward integration with traditional finance this week when Kraken secured direct access to the US Federal Reserve’s payment rails — a milestone that could change how crypto companies move dollars. Direct access to the Fed’s payment infrastructure could give crypto exchanges greater control over the flow of dollars while reducing reliance on banking partners, a long-standing problem for the industry.
It also suggests that the crypto infrastructure continues to mature and integrate with the traditional banking system despite broader industry headwinds and monthly market corrections – one of the key themes in the Crypto Biz newsletter.
Meanwhile, Bitcoin (BTC) miner MARA Holdings has pushed back speculation that it plans to dump its BTC holdings, explaining that recent regulatory filings will expand its treasury flexibility. Bitcoin rewards firm Fold strengthened its balance sheet by eliminating $66 million in convertible debt, while analysts say the New York Stock Exchange’s proposed tokenization framework could open the door to more institutional participation.
Kraken is the first Fed payment access in the crypto industry
Kraken’s banking arm secured a limited master account at the Federal Reserve Bank of Kansas City, giving it direct access to the US central bank’s payment infrastructure, a first for a crypto firm.
In an announcement Wednesday, Kraken Financial confirmed that it can now use the Fedwire system, a common real-time settlement network that allows financial institutions to send and receive payments with the Fed. Access allows Kraken to process US dollar payments directly with the central bank, rather than going to intermediary banks.
Approval is initially granted for one year and limits are tailored to Kraken’s business model and risk profile.
“With the main Federal Reserve account, we can operate not as a peripheral participant in the US banking system, but as a direct financial institution,” said Arjun Sethi, CEO of Kraken.
MARA clarifies Bitcoin treasury strategy after sell-off concerns
Bitcoin mining company MARA Holdings said the recent disclosure of Bitcoin sales from its balance sheet was meant to show flexibility, not an immediate liquidation of its assets.
Vice President Robert Samuels said the company’s latest Form 10-K filing with the US Securities and Exchange Commission makes clear that MARA has expanded its treasury strategy to allow for potential sales of Bitcoin if market conditions warrant. The policy also allows the company to periodically buy additional BTC.
Some members of the crypto community interpreted the proposal as permission to sell off MARA’s fund of more than 53,000 BTC, an interpretation that Samuels called “absolutely incorrect.”
Bitcoin-focused Fold will eliminate $66 million in convertible debt
Financial services firm Bitcoin Fold said it has written off $66.3 million in convertible debt, removing a potential source of balance sheet stress and shareholder dilution ahead of the launch of a new Bitcoin-rewards credit card.
In a recent disclosure, Fold said it retired two outstanding convertible notes — debt instruments that can be converted into equity — thereby reducing the risk of issuing additional shares in the future. The move also freed up 521 bitcoins that had previously been pledged as collateral for the loan.
A stronger balance could support the spread of the Bitcoin Fold rewards credit card, which allows users to earn BTC from everyday purchases through the Visa network.
Fold went public on the Nasdaq in February 2025 through a SPAC merger with FTAC Emerald Acquisition, becoming one of the first Bitcoin-focused financial services companies to go public.
TD Securities says the NYSE’s tokenization push could attract institutions
According to TD Securities strategist Reed Knoch, tokenization efforts linked to the New York Stock Exchange could accelerate institutional adoption of blockchain markets.
The NYSE recently introduced stock tokenization through an alternative trading system that allows 24-hour trading and instant settlement for tokenized stocks and exchange-traded funds while operating within existing market rules.
Notch said the model is similar to the “2.0” evolution of market infrastructure: Custody and settlement will remain at the Depository Trust and Clearing Corporation (DTCC), while trading will continue to comply with national best bid and offer (NBBO) requirements.
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