**[Analysis: Kraken Approved for Federal Reserve Master Account, a Historic Breakthrough for the Crypto Industry, May Trigger a Wave of Applications from Crypto Institutions]** BlockBeats reported on March 4 that crypto journalist Eleanor Terrett posted on social media, stating, "The United States' second-largest crypto exchange, Kraken, has just accomplished something no other crypto company has done before—obtaining critical access approval from the Federal Reserve. Kraken's banking division, Kraken Financial, has been approved by the Kansas City Fed to open a Federal Reserve master account. This marks the first time a native crypto company has been granted (albeit with limited permissions) direct access to the Federal Reserve's payment system. This approval comes five and a half years after Kraken submitted its application to the Kansas City Fed in October 2020. The account allows Kraken direct access to the Federal Reserve's payment system but does not include the right to use the Fed's lending tools. The company can hold reserves and clear transactions with central bank funds but cannot issue loans, use the discount window, or operate as a traditional commercial bank. According to sources, Kraken's approval is considered a "pilot" project to test this new model. This decision holds historic significance for the crypto industry, which has long been excluded from the traditional banking system, and indicates a shift in the Federal Reserve's stance. This move could potentially trigger a wave of applications for Federal Reserve master accounts from other crypto companies. Custodia Bank, Anchorage, and Ripple's U.S. banking partners have all applied for master accounts."