The cryptocurrency industry took a major step into the traditional financial system on Wednesday after a Wyoming-based digital asset bank was granted a Federal Reserve (Fed) master account. According to one expert, Ripple may follow suit.
The approval makes Kraken Financial the first crypto-focused bank in U.S. history to gain direct access to the Federal Reserve’s payments infrastructure, a development many see as a milestone for the sector.
Crypto enters the Fed’s main system
In announcement It points to a structural change in how modern crypto institutions interact with the US banking system. With a basic account, Kraken Financial can connect directly to the Fed’s payment rails, rather than relying on intermediary banks to process transactions. Arjun Sethi, CEO of Payward and Kraken, said:
This milestone marks the convergence of crypto infrastructure and independent financial rails. With the main Federal Reserve account, we can operate as a direct financial institution rather than as a peripheral participant in the US banking system.
The decision immediately sparked a debate over whether crypto companies could follow suit. Market expert Paul Barron argued on social media platform X that Kraken’s endorsement has effectively bridged the “gap” between crypto companies and traditional banking institutions.
Barron noted that by securing the Federal Reserve’s main account, the Kraken no longer operates on the fringes of the system, but instead sits there. Fedwire infrastructure used by major financial institutions such as JPMorgan and Goldman Sachs. “It’s BIG!” wrote
Barron went further and hinted that Ripple could be next. He pointed to the charter of Ripple’s National Trust Bank, which was issued in December 2025, as a fundamental step towards the eventual access of the Federal Reserve.
Final step for RLUSD Ripple expansion
According to Barron’s, direct access to the main account will be the final ingredient for Ripple’s stable dollar. RLUSDto calculate transactions with full banking scale.
Barron’s also pointed to the growing pace of legislation surrounding it CLARITY Actargue that regulatory developments in Washington could increase pressure on the Federal Reserve to integrate crypto-specialized institutions more fully into the financial system.
Ripple executives have previously acknowledged the strategic value of direct access to the federal reserve. In November 2025, Stuart Alderotti, Ripple’s CLO, described the concept as an “interesting idea”. interview with Reuters.
However, Ripple is not alone in seeking this level of integration. Other crypto-focused institutions, including the federally chartered Anchorage Digital, have also applied for major Federal Reserve accounts but have yet to receive approval.
At the time of writing, XRP was trading up 6% at $1.45, in line with a broader crypto market recovery that began on Wednesday led by Bitcoin (BTC).
Featured image from OpenArt, chart from TradingView.com
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