Kraken Fed Account Restricts Interest, Lending Access

Kraken's special account with the Kansas City Fed has several limitations aimed at reducing risk. Notably, the cryptocurrency exchange is prohibited from earning interest on its reserve balances held at the Federal Reserve. Furthermore, Kraken is barred from accessing emergency lending facilities provided by the Fed. The account also excludes Kraken from utilizing the FedNow® Service and standard ACH payment systems, impacting its operational capabilities. These restrictions highlight the cautious approach regulators are taking with financial technology firms seeking direct access to central bank infrastructure.