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Kraken’s Application to the Federal Reserve: A Behind the Scenes Fight

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On April 27th, Marco Santori, Chief Legal Officer of the Cryptocurrency Exchange, stated in a new interview that the exchange had previously submitted an application for the Federa

Krakens Application to the Federal Reserve: A Behind the Scenes Fight

On April 27th, Marco Santori, Chief Legal Officer of the Cryptocurrency Exchange, stated in a new interview that the exchange had previously submitted an application for the Federal Reserve’s main account, and so far, the Federal Reserve has not rejected the application. Marco Santori stated that Kraken will not publicly sue the Federal Reserve in a high-profile manner like Custodia, but will fight “behind the scenes” to connect to the FedNow network used by all other large financial institutions to settle transactions. （Decryt）

Kraken Chief Legal Officer: The Federal Reserve has not yet rejected Kraken’s master account application

In a new interview with Decryt, Marco Santori, the Chief Legal Officer of Kraken, revealed that the cryptocurrency exchange had previously submitted an application for the Federal Reserve’s main account. Despite not being rejected, Kraken has not been able to connect to the FedNow network used by all large financial institutions to settle transactions. In this article, we explore the details of Kraken’s application to the Federal Reserve and how the exchange is fighting “behind the scenes” to connect to the network.

Background on Kraken

Kraken is one of the leading cryptocurrency exchanges in the world, operating in over 190 countries with more than 6 million clients. The exchange offers a wide range of cryptocurrency trading services, allowing users to trade over 50 cryptocurrencies and fiat currencies. Kraken also provides security features, such as cold wallet storage and two-factor authentication, to keep users’ funds safe.

Kraken’s Application to the Federal Reserve

In the interview with Decryt, Santori revealed that Kraken had submitted an application to the Federal Reserve’s main account, which would allow the exchange to connect to the FedNow network. The network is used by large financial institutions to settle transactions in real-time and is expected to become the standard for payments in the United States. However, despite Kraken not receiving a rejection of their application, they have not been able to connect to the network.

Kraken’s Fight Behind the Scenes

Santori stated that Kraken will not publicly sue the Federal Reserve in a high-profile manner like Custodia, who recently filed a lawsuit against the reserve for rejecting their application. Instead, Kraken will fight “behind the scenes” to connect to the network. This includes engaging in dialogue with the Federal Reserve to find a solution that works for both parties.
Kraken is not alone in facing roadblocks in their attempt to connect to the FedNow network. Santori explained that other cryptocurrency exchanges have also submitted applications to the Federal Reserve but have not been able to connect to the network either. The reasons behind the rejections are unclear, but it is clear that cryptocurrency companies face significant barriers when it comes to accessing traditional banking services.

The Future of Cryptocurrency and Banking

Cryptocurrency is becoming increasingly mainstream, and it is crucial for cryptocurrency companies to have access to traditional banking services. Without access to these services, cryptocurrency exchanges will struggle to become fully integrated with the traditional financial system. Kraken’s fight to connect to the FedNow network highlights the need for better communication and collaboration between the cryptocurrency industry and the traditional banking industry.

Conclusion

Kraken’s application to the Federal Reserve’s main account is an important step towards integrating cryptocurrency with traditional banking services. While the exchange has not been publicly rejected, it has not been granted access to the FedNow network yet. Kraken’s decision to fight “behind the scenes” shows that the exchange is committed to finding a solution that works for both parties. The future of cryptocurrency ultimately lies in its ability to become fully integrated with traditional banking services, and Kraken’s fight highlights the importance of collaboration between the two industries.

FAQs:

Q: What is the Federal Reserve’s main account?
A: The Federal Reserve’s main account is used by large financial institutions to settle transactions in real-time.
Q: Why is it important for cryptocurrency companies to have access to traditional banking services?
A: Without access to traditional banking services, cryptocurrency companies will struggle to become fully integrated with the traditional financial system.
Q: What is the FedNow network?
A: The FedNow network is a real-time payments network used by large financial institutions to settle transactions.
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