[TD Cowen: More Crypto Companies Expected to Obtain Federal Reserve Master Accounts, Banks Unable to Prevent It] March 6 news: TD Cowen stated that following Kraken's approval for a Federal Reserve master account, more crypto companies are expected to gain similar access this year. Kraken Financial became the first crypto company approved to access the Federal Reserve's core payment system. The Kansas City Fed approved a one-year 'limited-purpose' account with undisclosed restrictions based on its business model and risk profile. Kraken qualified for the application due to holding a Wyoming Special Purpose Depository Institution (SPDI) license, categorizing it as a 'Tier 3' entity as defined by regulators. TD Cowen noted that although banking organizations have raised objections and may file lawsuits, banks are unable to prevent such approvals. The Federal Reserve is expected to limit Kraken's credit services, and it may not receive interest on reserves. Other crypto companies with slower application progress may need to wait for the Federal Reserve to finalize a streamlined review framework.